{"id":114347,"date":"2020-11-18T06:46:17","date_gmt":"2020-11-18T03:46:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-price-hits-18k-but-traders-expect-shallow-pullback-before-new-high\/"},"modified":"2020-11-18T06:46:17","modified_gmt":"2020-11-18T03:46:17","slug":"bitcoin-price-hits-18k-but-traders-expect-shallow-pullback-before-new-high","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-hits-18k-but-traders-expect-shallow-pullback-before-new-high\/","title":{"rendered":"# Bitcoin price hits $18K but traders expect \u2018shallow\u2019 pullback before new high"},"content":{"rendered":"

“# Bitcoin price hits $18K but traders expect \u2018shallow\u2019 pullback before new high <\/strong>”<\/p>\n

Bitcoin (BTC) just set another 2020 high by rallying above $18,000 for the first time in three years.<\/p>\n

On Nov. 17 BTC price rallied to $17,858 after a high volume surge pushed the price cleanly through the $17,100 to $17,300 range that many analysts believed would be a strong resistance level. <\/p>\n

According to Decentrader co-founder, filbfilb, Bitcoin price could continue to march higher in the short-term if key underlying supports hold. <\/p>\n

BTC\/USD daily chart. Source: <\/em>TradingView<\/em><\/a><\/figcaption><\/figure>\n

The popular analyst tweeted the above chart and said: <\/p>\n

\u201cThe current PA could still very easily result in a blow-off towards the Golden Ratio Multiplier, currently at 19k.\u201d<\/p><\/blockquote>\n

BTC\/USDT daily chart. Source: <\/em>TradingView<\/em><\/a><\/figcaption><\/figure>\n

As shown on the weekly chart, Bitcoin is just a hair away from snatching the $19,763 all-time high reached on December 2017, and on multiple timeframes, the volume profile visible range (VPVR) shows there is little resistance above $17,000. <\/p>\n

Analysts were expecting the price to briefly consolidate in the $17,500 to $17,700 range as some traders took profits, but bulls app<\/a>ear intent to push BTC higher. To date, Bitcoin has rallied 13.06% since breaking through the $16,000 resistance, therefore a period of consolidation to build support for the next leg up is healthy and expected. <\/p>\n

As for the fundamentals behind today\u2019s price move and the possible outcomes for the short-term, Matt Blom, the head of global sales trading at EQUOS said: <\/p>\n

\u201cThe market has extended to the upside, breaking above the trend channel and appears to be entering a blow-out phase. With a strong bull market, the tendency is to call a top, for me, the question is at what point does the rally become unstainable.\u201d<\/p><\/blockquote>\n

Bitcoin price breaking from an ascending channel. Source: Matt Blom, TradingView<\/em><\/figcaption><\/figure>\n

As BTC stormed through the $17,000 level, there was a lot of talk about whether the price would reject near the 2017 high or break through the \u2018resistance\u2019 and rally to a new all-time high.<\/p>\n

According to Blom: <\/p>\n

\u201cIf we drive up to $19,050 this week, I would expect a pullback to the $17,000 level. There\u2019s a lot of new money in Bitcoin, they\u2019ve never experienced a Bitcoin retracement! In the past, Bitcoin has retraced sharp up moves, but this time, there is one missing ingredient! The lack of auto-liquidation of leveraged longs.\u201d<\/p><\/blockquote>\n

In 2017, the rally was driven purely by retail traders and a huge amount of FOMO, but in 2020 the scenario is much different. <\/p>\n

BTC futures volume by exchange. Source: Digital Assets Data<\/em><\/figcaption><\/figure>\n

All throughout 2020 Cointelegraph has reported on the growing trend of large-size Bitcoin acquisitions by institutional investors. Data also shows that the increasing volumes at regulated Bitcoin and Ethereum derivatives markets is the result of bigger hands becoming involved with Bitcoin. <\/p>\n

Blom said: <\/p>\n

\u201cThe fact the market is now focusing its rallying efforts during the iinstitutional working week is a clear indication that real money has arrived, which leads me to believe the pull-back many are expecting maybe shallow.\u201d<\/p><\/blockquote>\n