Market conditions currently suggest that Bitcoin could reach $ 20,000 again.
The cryptocurrency is currently trading in an upward channel, which is confirmed by the formation of more than two bottoms that outline upward diagonal support and the formation of more than two peaks that outline upward diagonal resistance. In other words, there is a model of more than two consecutive higher bottoms and tops.
As the price moves in this upward channel, the outlook remains bullish. In most cases, such movements end with a break in the channel in the direction of the previous trend. As the flagship cryptocurrency was on the rise before the channel was formed, it is very likely that it will continue to rise.
This was the case when in December 2018th Bitcoin broke off bearish range and began its rise. On April 2, 2019, the price shot from $ 4,132 to $ 5,121.
This led to a price rally, which lost as much as about $ 14,000 in June 2019. Meanwhile, Bitcoin formed two rising channels, both of which ended in a break-up.
In 2020, the flagship cryptocurrency behaves in a very similar way. Bitcoin made a turnaround after falling to an annual low below $ 4,000. It moves in an ascending wedge, which is a bearish sign. However, retailers disabled the model and established a more bullish attitude.
Eventually, the price rose to $ 10,000 before adjusting to about $ 8,000. This led to a number of similar attempts to break this level and start a strong rise beyond it. BTC then rose and formed higher highs and lows, with the recent rise pushing the currency to almost $ 10,500. These price fluctuations outlined a pattern of an upward channel.
In the process of its rise, Bitcoin also managed to make a golden cross. This occurs when the short-term moving average of an asset crosses over a longer-term one.
Interestingly, the cryptocurrency made the same golden cross during its 2019 rally just as it was moving in the second ascending channel.
The last time there was a series of channels and a golden cross, Bitcoin was launched with over 150%. This may happen again due to underlying fundamental factors. The fall of the Chinese yuan would be a very good sign for the BTC, and this seems possible given the growing tensions between the United States and China.
Meanwhile, the quantitative easing of central banks makes gold and Bitcoin ideal reserves of value.
Bloomberg wrote the following in its report :
Bitcoin ended 2019 at about $ 7,000, around the bottom of its range, which suggests it will head to the top [of the range in question]. Last year, the peak was around $ 14,000, which could mean that we will see double that in 2020 if we move in the new lane …