Bitcoin trend is highly bullish despite oversold technical indicators $16,000 resistance demolished by the bulls using strong liquidity wave Contents hide 1 Bitcoin finding more footing amongst traditional investors 2 Bitcoin trend in the last 24 hours – BTC/USD is overbought but rising 3 Bitcoin at $16,000 – Why the Crypto King is scaling new … Read more
- Bitcoin trend is highly bullish despite oversold technical indicators
- $16,000 resistance demolished by the bulls using strong liquidity wave
This year saw some of the biggest names of the investment realm to adopt Bitcoin. As the adoption rate of BTC rises, so does its value in mainstream finance. Now, Stanley Druckenmiller, a billionaire investor, has disclosed his Bitcoin holdings, and crypto fans are loving it. He hasn’t made public his entire BTC stash but commented that he believes BTC will far outperform gold due to its liquid characteristics.
Besides Stanley, other notable Wall Street investors who took to Bitcoin include Paul Tudor Jones and Bill Miller. Cory Bernardi, an Australian politician, has referred to Bitcoin as “Millennial’s Gold.” As Bitcoin gets approval from trusted Wall Street giants and credible financial institutions, it is likely to find more acceptance amongst the general public. Such widespread support is sure to increase its value over the long term and bullish Bitcoin trend outperform traditional market assets.
Presently, BTC/USD is at $16,230, i.e., around its annual highs. After outperforming every other traditional asset, Bitcoin has crossed the $16,000 mark for the first time since 2017. The rising Bitcoin trend is due to a burgeoning BTC futures market, HODLing by the BTC whales, and sustained bullish momentum. Even though technical indicators are flashing overbought for the past few days, Bitcoin sustains its bullish trajectory.
Bitcoin trend in the last 24 hours – BTC/USD is overbought but rising
Bitcoin cross another crucial resistance level of $16,000 in the latest bullish rally. The BTC/USD pair posted a new high of $16,494 to demonstrate the bull’s liquidity’s underlying strength. There is strong support underneath at $15,900, and the pair has bounced back from this level on the hourly charts.
The RSI is fast approaching overbought levels. Bulls will need to sustain the momentum with positive stagnation. However, bears are lining up ahead to book profits on higher levels. The rising trading euphoria is reflected in both the spot and derivative positions. The steady uptick in volumes and open interest is also evidence of the trader’s interest. CryptoQuant reports large positions built by BTC whales are presently in liquidation as the price is crossing the $16,000 mark.
Currently, the price trades at multi-year highs. Looking ahead, the pair will face thin resistance till $18,700, and bulls can reach there with minimum effort. However, they must maintain the volume momentum. Once BTC/USD touches the $18,700 mark, it won’t be long before we see $20,000 on the charts.
Bitcoin at $16,000 – Why the Crypto King is scaling new heights
As BTC/USD touched $16,494 after 2017, the entire crypto community is euphoric. The bullish Bitcoin trend is relentless, and there’s buying action coming from all the corners. The rising strength of BTC can be attributed to three factors, namely, the BTC futures market, whale HODLing, and technical indicators. Let’s understand these in detail to know where BTC is headed next.
The bitcoin derivatives market is presently stable, and there are no signs of overheating despite BTC/USD touching new highs. Both day traders and large investors booked profits at higher levels and bought the pair when it dipped to the $15,072 mark. There’s an air of caution among the traders. Whales collected profits near the $15,000 support zone. Fortunately, the profit booking helped cool down the derivatives market by flushing out excessively long positions and resetting the futures market.
Secondly, bulls repeatedly knocked at $16,000 with varied liquidity strength. Gradually, the resistance gave way, and bulls penetrated towards higher levels. Earlier, the $16,000 mark offered formidable resistance to bulls as the pair were repeatedly rejected from this pivot point. Bears defended the fort with massive sell orders. The repeated failures weakened the $16,000 fort paving the way for higher levels.
The strong support zone at the $14,900 level is the third reason why Bitcoin trend touched new 2020 highs. Whales have occupied large positions here, and the cluster has provided strong support to the BTC/USD pair. Next, the pair finds support at lower levels around $14,130 and $13,600.
Bitcoin handled US Presidential election results surprisingly well
As Joe Biden won the US Presidential elections, Bitcoin analysts were expecting a wild ride. However, apart from a decent dip, nothing untoward happened on the BTC/USD chart. The dollar debasement due to excessively weak monetary policy is likely to concern economists. Bitcoin trend and gold are poised to rise in the long term. Bitcoin has gained 10 percent since the announcement of election results.
The long-term BTC investors have made significant profits and are presently enjoying 14-month highs. It is highly likely that they will exit their long positions to book profits. The ‘Market Value to Realised Value’ is rising, indicating that large investors are likely to book their profits as per Bitcoin trend. Additionally, traders who have accrued 20 percent of profits on their initial investments will likely liquidate their positions.
Major faces of the Biden administration will be unveiled in the next few months. It will help clear the crypto-related policies of the upcoming President. So far, Biden has not shown and negative bias towards the crypto realm and bodes well for bullish Bitcoin trend.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.