{"id":114046,"date":"2020-11-17T22:55:28","date_gmt":"2020-11-17T19:55:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-traders-think-a-bitcoin-blow-off-top-will-occur-above-18000\/"},"modified":"2020-11-17T22:55:28","modified_gmt":"2020-11-17T19:55:28","slug":"why-traders-think-a-bitcoin-blow-off-top-will-occur-above-18000","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-traders-think-a-bitcoin-blow-off-top-will-occur-above-18000\/","title":{"rendered":"# Why traders think a Bitcoin \u2018blow-off top\u2019 will occur above $18,000"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a357889614cc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a357889614cc\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-traders-think-a-bitcoin-blow-off-top-will-occur-above-18000\/#The_chances_of_a_blow-off_top_is_increasing\" >The chances of a blow-off top is increasing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/why-traders-think-a-bitcoin-blow-off-top-will-occur-above-18000\/#Futures_funding_rates_are_neutral\" >Futures funding rates are neutral<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Why traders think a Bitcoin \u2018blow-off top\u2019 will occur above $18,000 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin price is steamrolling toward $18,000 and excited traders are calling for the top-ranked digital asset to overtake the 2017 all-time high at $19,763. Unless you&#8217;re a bear, reaching a new all-time high is great but ideally, for a sustainable rally to maintain its pace, a staircase uptrend is more beneficial than a sudden upward climb. <\/p>\n<p>In recent weeks, BTC has continuously surged\u00a0higher without prolonged consolidation periods or any major dips.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/69caf7d7-d4a7-40ad-b098-abee045a17d8.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD daily chart. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"The_chances_of_a_blow-off_top_is_increasing\"><\/span>The chances of a blow-off top is increasing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A pseudonymous trader known as \u201cSqueeze\u201d specified the lack of consolidation in Bitcoin has been a trend since late October and he hinted that this can exhaust the momentum of the current rally.<\/p>\n<p>While Bitcoin&#8217;s momentum has been strong, the price has also increased by nearly six-fold since the March crash. When BTC continues to increase without major corrections, the probability of a large pullback increases. The trader <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cryptoSqueeze\/status\/1328730566254948353?s=20\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cConsolidations are getting shorter without much retracement. Blow-off top is coming soon.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/648a0be1-1f56-4a4d-b650-a523f0ea6e30.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin consolidation phases and rallies. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cryptoSqueeze\/status\/1328730566254948353?s=20\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>Peter Brandt, a popular veteran trader who also keeps tabs on BTC price action, raised a similar point earlier this week. Brandt noted that in previous bull runs, BTC saw nine corrections until the record high.<\/p>\n<p>In the recent uptrend, at least to date, Bitcoin saw two major corrections. Compared to historical uptrends, BTC has seen considerably smaller corrections. He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/PeterLBrandt\/status\/1328153581460008961\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cDuring the 2015-2017 bull market in Bitcoin $BTC, there were 9 significant corrections with the following averages: 37% decline from high to low. 14 weeks from one ATH to the next ATH. Since the early Sep low there have been two 10% corrections.\u201d<\/p><\/blockquote>\n<p>Since the Nov. 8 dip, the price of Bitcoin increased from $14,344 to as high as $17,858 on Binance. Within merely ten days, BTC saw a near 25% gain with a clear consolidation phase.<\/p>\n<p>The pattern of a rally followed by consolidation and occasional corrections is key for a prolonged rally as it neutralizes the futures market and decreases the chance of abrupt blow-off tops.<\/p>\n<p>In technical analysis, a blow-off top refers to when the price of an asset suddenly and steeply falls. As an example, BTC saw a blow-off top after the 2017 peak. In the next 52 days that followed, BTC dropped by almost 70%.<\/p>\n<p>Since Bitcoin is nearing price discovery above $20,000, traders expect BTC to see a fall before hitting $20,000. But, there is a chance that this trade is overcrowded, as many analysts seem to be anticipating a similar scenario.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Futures_funding_rates_are_neutral\"><\/span>Futures funding rates are neutral<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One variable that could see the rally continue in the short term is the funding rate. Across major futures exchanges, the BTC futures funding rate is hovering at 0.01%.<\/p>\n<p>Futures exchanges in the cryptocurrency market use the mechanism called \u201cfunding\u201d to achieve balance among traders. <\/p>\n<p>When the majority of traders in the market are longing Bitcoin, the funding rate turns positive. If this h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens, long contract holders or buyers have to incentivize sellers and vice versa.<\/p>\n<p>Top futures exchanges, like Binance Futures, are showing a 0.01% funding rate, which indicates that the current rally is not overheated.<\/p>\n<p>Ultimately, traders still expect Bitcoin\u00a0will form a blow-off top as the price approaches $18,000. Meanwhile, technical analysts noted that the recent BTC price cycle shows that each rally has been followed by shorter consolidation periods.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/why-traders-think-a-bitcoin-blow-off-top-will-occur-above-18-000\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Why traders think a Bitcoin \u2018blow-off top\u2019 will occur above $18,000 &#8221; Bitcoin price is steamrolling toward $18,000 and excited traders are calling for the top-ranked digital asset to overtake the 2017 all-time high at $19,763. Unless you&#8217;re a bear, reaching a new all-time high is great but ideally, for a sustainable rally to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":114047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/fec775ea-3d79-4159-95cd-5c7040f5a210.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,74937,75012,75150,73785],"class_list":["post-114046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-price","tag-derivatives","tag-market-update","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/114046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=114046"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/114046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/114047"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=114046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=114046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=114046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}