Bitcoin has taken to break a new 2020 high every other day most recently.
The leading cryptocurrency is repeating history, with Q4 turning out to be really good. First October had us surging 30% to above $14,000.
In November, which has been historically the best performing month for Bitcoin, it is looking to make things even better as yesterday BTC had its highest daily close since January 2018.
Today, the digital asset is rushing past $14,500, last seen on January 8, 2018.
But, it is just the beginning, as there isn’t much resistance between $14k and the all-time high of $20,000.
We are ready to hit $14,700 on the back of increased trading volume currently above $3 billion. With $14.5k, not a “ meaningful resistance,” if 15k gets run over here, the next resistance is above $16,000 with support at 13.8k, as per trader CryptoGainz.
However, a few retracements will also be there on the way to the up, offering the perfect opportunity to get into the game or stack more sats along the way.
With Bitcoin’s GTI Global Strength Indicator currently above 80, putting it in overbought territory, the price could take a breather before moving a new leg higher.
“We're not range bound anymore. we're making new yearly highs. we haven't had a legit retrace in ages. all characteristics of a blow off top forming right before the first strong leg up. and I think it'll be a 2k candle because I don't see any consequential resistance until 16k,” said the trader.
"how do you know we're early?"
intraday bearish engulfing candles. those will become very infrequent when retail goes risk on. that's when retail momentum algos will go white-hot, as chop gets minimized even on intraday timeframes.
— CryptoGainz (@CryptoGainz1) November 5, 2020
Overall, the time is to be bullish, and as the trader points, it ‘be long on your longs’ because “everyone intending to risk off already has.”
It was around $13,800, where the weekly and monthly resistance was present at weekly SFP, monthly SFP, daily bear div, miner capitulation, and pre-election run-up when the profits were to be taken off. Now, it’s time to rip higher and higher.
There might be precariousness around the US presidential election, but the market is clear about Bitcoin, and all the uncertainty is keeping the digital asset in action.
“The longer that we don’t have a president technically and the longer that we don’t have agreement among the population is positive for crypto,” said David Tawil, president of ProChain Capital. “If the courts are forced to get involved, volatility (and fear) will reign for a while. Add all this to the fact that crypto has been performing incredibly well this year — better than gold and stocks — crypto is going to gain and gain a lot of believers.”
In 2020, to date, compared to Bitcoin’s over 100% returns, gold did only 25%, S&P 500 a meager 6.58%, and US dollar 1.58%, with WTI being the worst performer recording losses of -40.70%.
With Bitcoin embarking on yet another bullish cycle, the third one, central banks considering negative interest rates, heightened institutional interests, and PayPal allowing customers to access cryptos and increasing their adoption, the market is ready for the ATH.