Bitcoin’s price has risen significantly in the past few weeks, although traders say it may be time for … [+]
Bitcoin (BTC) has seen rising prices in the past few weeks and has recently come back into the focus of the mainstream, at least in part. The price of the asset recently topped $ 19,000, less than $ 1,000 away from its 2017 all-time high of near $ 20,000. Although the asset has seen a significant upward move in price, according to derivatives trader and YouTuber Tone Vays and Brian Krogsgard, trader and podcaster, the current uptrend could be higher, at least in the short term.
“I expect this bull run to end this month,” Vays told me in a message on Nov. 24, 2020. “It’s possible it just ended, but I’ve been saying it for the past ten days or so.” that this bull run should end in November or early December, but I don’t expect a bear market. “
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bull runs represent periods of time that lead to a notable upward movement in prices. Runs or trends can depend on the context and vary over time. Just because an asset may decline in price for a period of time after an exuberant rally does not necessarily mean that the asset has entered a largely bearish macro environment.
Market prices generally move in waves. In a macro bull market, upswings are often followed by smaller retreats, followed by additional larger ups and downs and smaller retreats. Higher highs and higher lows as chartists say.
“I expect either significant consolidation or, most likely, a decline to $ 14,000-15,000 in the next few months,” Vays said. “Then it will be a month or two before it hits $ 20,000 again, and I expect the $ 20,000 interruption towards the end of the first quarter of next year. Maybe I expect the $ 20,000 break in March or April and then we’ll go up quickly. ”
However, the markets sometimes move quickly and require constant valuation. “This is my current outlook, but it may change tomorrow,” commented Vays on his position on Bitcoin.
Bitcoin’s last all-time high came in December 2017 when the asset hit $ 19,892, based on Coinbase exchange data on TradingView.com. The coin returned to the $ 19,000 level three years later and hit $ 19,468 on November 24, 2020 after more than seven weeks of sharp upward movement. This can be seen in the last seven consecutive green weekly price candles on the Bitcoin chart. Mainstream media outlets like CNBC, Reuters, and Fox FOXA have also stepped on board recently to cover the price of Bitcoin, paying attention to the blockchain-based asset.
Overall, Bitcoin has seen significant highs and lows in 2020. Between February and March, the asset fell from $ 10,500 to $ 3,860 due to Covid-19 news. By May, Bitcoin was back above $ 10,000. The following months led to relatively sideways price movements that led to a breakout in July.
“In my opinion, the Bitcoin bull run started in July 2020 with a consolidation pause of around $ 9,200 and confirmed it by holding the 20-week moving average at $ 10,400 in September,” Krogsgard said on Jan. November 2020 in a message.
“Many market participants are ready to wait for new highs and price explorations. We are now very hot and facing a major mean reversal – which would be a great opportunity to purchase an immersion; The macro environment very much favors Bitcoin. “
For Bitcoin, all-time highs above the $ 20,000 range are considered foreign territory due to the lack of historical price charts on which to base the base valuation.
“I anticipate we’ll have at least a year of price exploration this cycle and I want to maintain a significant bitcoin exposure of at least $ 50,000,” noted Krogsgard.
Although a number of established financial players have chosen Bitcoin this year, such as business intelligence firm MicroStrategy MSTR and the $ 425 million purchase of BTC, some participants are still against the coin. Peter Schiff has repeatedly expressed gold as superior to Bitcoin. Warren Buffett has also made negative comments about Bitcoin in recent years.
Note: This article has been updated to clarify that weekly candles refer to the Bitcoin price chart.
Disclaimer: I actively trade in cryptocurrencies and hold a small amount of BTC, ETH, LTC, ZEC, BCH and LINK.