Another Risk Rally is Here, Will This Send Bitcoin to $20,000 This Time?

An overall resilient appetite for risky assets could see bitcoin higher combined with another round of stimulus checks coming soon. Aso, a significant move above $10k could be “a moon shot.”

In a spark of volatility, bitcoin jumped higher last night, going as high as $9,800. Since then, the leading digital currency has corrected slightly and is currently trading around $9,620 with 1.78% gains while managing $1.6 billion trading volume.

According to the DVAN Buying and Selling Pressure Indicator that depicts bull and bear trends, the crypto market is stuck in a negative trend. The indicator is heading further away from 400 level that has previously acted as a point of resistance.

To breach this level, Bitcoin and Ether must rally. Without a trend reversal, the gauge can further decline.

“If it can break above $10,000 in any significant way, it’s going to take off in a moon shot. Momentum is a very important driver in the marketplace right now, so if Bitcoin, which is no stranger to momentum, can break out, it’s going to fly,” said Matt Maley, chief market strategist for Miller Tabak + Co.

Source: Bloomberg

In 2020 so far, BTC/USD is up 32%. But we are still under $10,000.

Bitcoin continues to trade in tandem with riskier assets, experiencing a sell-off last week amidst a broader risk-asset aversion.

“Bitcoin continues to consolidate in what many crypto fans are calling the typical accumulation phase that occurs after a halving event,” wrote Edward Moya, senior market analyst at Oanda. The digital currency is struggling “despite an overall resilient appetite for risky assets.”

Moreover, with second stimulus checks confirmed, markets are expected to start moving again, and so will Bitcoin, which is already recording gains this week.

Wall Street is also celebrating the second phase of reopening the New York Economy, and traders are in a buying mood.

As for the ripples, President adviser Peter Navarro’s comments sent through the market with him saying the China deal is over has also been soothed by Donald Trump. He took to Twitter late Monday, stating, “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!”

Market experts are expecting Bitcoin to experience an upside as analyst Mati Greenspan who was sitting on the sidelines, now has his “crypto-only portfolio” allocated again.

“We've got another risk-rally on our hands, let's hope it lasts a while this time,” he said.

But an even more bullish tone was set by analyst PlanB who says bitcoin is going to $20k very soon.

As we reported, PlanB also shared recently that bitcoin is correlated (95% R2) and cointegrated with US equities (S&P500) as such supported by the US Federal Reserve actions. This means, if the S&P 500 goes up 2x, BTC will spike 416x.

And Bitcoin’s top at $288,000 in the next bull market as per the S2F model corresponds S&P 500 at $4,300.

Bitcoin (BTC) Live Price

1 BTC/USD =$9,111.8240 change ~ -0.96%

Coin Market Cap

$167.86 Billion

24 Hour Volume

$4.06 Billion

24 Hour VWAP

$9.11 K

24 Hour Change

$-87.7951

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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