Bitcoin has made another big move again today but it has largely been eclipsed by altcoins which are pumping hard. Nevertheless, bullish momentum is back for BTC and it could revisit its all-time high again before the year is out.
Bitcoin Reaches Longer Term Resistance
Bitcoin forked projects such as BCH, BSV, BTG and BCD are surging by double digits today but the king of crypto still dominates overall proceedings in the crypto space.
For the second day in a row bitcoin lifted off from intraday levels to post a new high for 2020. Today it has been a move from $8,500 to top out just below $8,900 according to Tradingview.com.
The 4.5% gain has taken BTC prices to their highest levels for over two months as the sentiment turns green again.
At the time of writing a shorter term pullback had already initiated dropping prices back to [coin_price].
Traders and analysts are confident that new highs will be made in the coming months and this has been ascertained by looking at open interest.
Total open interest for Bitcoin futures gradually rising to $3bln pic.twitter.com/8uqY8hUSlH
— skew (@skewdotcom) January 14, 2020
Open interest, or OI, refers to the total number of outstanding derivative contracts, such as options or futures that have not been settled. The $3 billion figure is extremely bullish as it represents the total value of outstanding bitcoin futures and options contracts traded at major exchanges.
Traders are already looking at higher levels of resistance and ‘Satoshi Flipper’ has eyed the mid-$9k level.
I’m hoping we run up to $9400 and consolidate sideways just under the resistance and for a few days, giving alts a chance to run every day this week.
$9400 is going to be the next major level of resistance
I'm hoping we run up to $9400 and consolidate sideways just under the resistance and for a few days, giving alts a chance to run every day this week.
This is my bullish outlook pic.twitter.com/J2L6ksV3To
— Satoshi Flipper (@SatoshiFlipper) January 15, 2020
Expect a BTC Pullback
As with any large market movement there is always a correction. Since this momentum started, following the US air strike on Iran’s military leader, bitcoin has gained almost $2,000.
That equates to nearly 30% in just twelve days.
Analysts are now eyeing a pullback before a sustained move higher. Popular crypto trader ‘Loma’ recently commented;
As a bull, I’d like for us to actually pullback to $8,100 – $8,300 before a move up to $9,000. Call it healthy.
Fellow trader and popular analyst Josh Rager has also observed the $9,000 level as a place to short. As bitcoin found its 2020 peak a few hours ago he posted a longer term outlook for resistance areas to break with a prediction that five figure bitcoin will soon be revisited.
Breaking $10,350s, IMO, will confirm next big uptrend with 5-digit BTC for months to come
$BTC – Prices to Watch
$9400's – Held as support for June-Sept range, significant area to break
$10,350s – Point of control, highest volume traded at this pricepoint from May to December
Breaking $10,350s, IMO, will confirm next big uptrend with 5-digit BTC for months to come pic.twitter.com/ZOz3fcOuP2
— Josh Rager ? (@Josh_Rager) January 15, 2020
Now that the bottom is over $2k away confidence is building that it will not be revisited and the bulls now control markets. This year there are more fundamentals which could lead to a $20k bitcoin price once again.
Will BTC revisit $20k in 2020? Add your comments below.
Images via Shutterstock, Twitter @Josh_Rager @SatoshiFlipper @skewdotcom, BTCUSD charts by Tradingview