{"id":119441,"date":"2020-11-24T21:31:36","date_gmt":"2020-11-24T18:31:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-bitcoin-price-faces-a-major-hurdle-at-20000\/"},"modified":"2020-11-24T21:31:36","modified_gmt":"2020-11-24T18:31:36","slug":"3-reasons-why-bitcoin-price-faces-a-major-hurdle-at-20000","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-price-faces-a-major-hurdle-at-20000\/","title":{"rendered":"# 3 reasons why Bitcoin price faces a major hurdle at $20,000"},"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-6a3befba44f99\" 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-6a3befba44f99\" 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\/3-reasons-why-bitcoin-price-faces-a-major-hurdle-at-20000\/#A_potential_bull_trap_scenario\" >A potential bull trap scenario<\/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\/3-reasons-why-bitcoin-price-faces-a-major-hurdle-at-20000\/#20000_is_a_major_resistance_level_for_Bitcoin\" >$20,000 is a major resistance level for Bitcoin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-price-faces-a-major-hurdle-at-20000\/#The_funding_rate_is_extremely_high\" >The funding rate is extremely high<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-price-faces-a-major-hurdle-at-20000\/#An_active_OTC_market_is_a_variable\" >An active OTC market is a variable<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why Bitcoin price faces a major hurdle at $20,000 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The price of Bitcoin (BTC) hit $19,469 on Coinbase, reaching its highest point since its December 2017 peak. Although the dominant cryptocurrency is close to surpassing its record high, there are some warning signs to take note of.<\/p>\n<p>Three potential reasons Bitcoin faces the possibility of a pullback at $20,000 are a bull trap, overhead resistance and an overcrowded derivatives market.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/f9a3a5f5-4222-4f61-a3da-579e69af0a35.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 15-minute chart. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"A_potential_bull_trap_scenario\"><\/span>A potential bull trap scenario<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A pseudonymous cryptocurrency trader known as \u201cBitcoin Jack,\u201d who called the Bitcoin bottom in March, laid out a potential bull trap scenario.<\/p>\n<p>The term &#8220;bull trap&#8221; refers to a technical pattern wherein late buyers or long holders get tr<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>ed as the price of the asset drops.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/00dbf021-11f0-4e3e-8275-1ed5c02a763a.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>A potential Bitcoin price trend. Source: Bitcoin Jack<\/em><\/figcaption><\/figure>\n<p>If Bitcoin rejects from the $19,200 to $19,300 area, the trader suggested that a potential pullback is likely. He noted that the $16,000 level would remain a compelling macro support level.<\/p>\n<p>Referring to Bitcoin Jack\u2019s potential price trend projection, a trader known as \u201cNekoZ\u201d emphasized that such a trend is possible. He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoNekoZ\/status\/1331259365777567744\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cSeeing dips down to 12k is scary as my levels are consolidation between 16-18k. But yeah very possible, resistances don\u2019t get broken typically on the first try. Which is shown from previous PA along the way up.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"20000_is_a_major_resistance_level_for_Bitcoin\"><\/span>$20,000 is a major resistance level for Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If Bitcoin passes $20,000, it would enter price discovery as it searches for a new ceiling. Above $20,000, there is no historical data or evidence to suggest that BTC would top out at a certain price.<\/p>\n<p>BTC could theoretically rise to various targets many industry executives and analysts have shared throughout the past year. Most predictions range anywhere between $25,000 to $100,000 for the ongoing cycle.<\/p>\n<p>Hence, there would be significant interest from sellers to aggressively defend Bitcoin from moving past $20,000.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_funding_rate_is_extremely_high\"><\/span>The funding rate is extremely high<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sellers could find it compelling to add to their positions below $20,000 due to the high funding rates.<\/p>\n<p>Across major cryptocurrency exchanges, the funding rate for the Bitcoin perpetual swap contract ranges from 0.05% to 0.1%. This means that buyers or long contract holders are paying short-sellers a large part of their positions as fees.<\/p>\n<p>Considering that funding rates are highly positive, short-sellers could find it compelling to aggressively short the sub-$20,000 region.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"An_active_OTC_market_is_a_variable\"><\/span>An active OTC market is a variable<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Still, on-chain data show that the over-the-counter (OTC) market is active. This typically suggests that whales, high-net-worth investors and institutions could be purchasing Bitcoin. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/239e6645-aea5-4892-a259-17278cac70d1.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=cashtag_click\">BTC<\/a> Fund Flow Ratio hit a three-year low. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<p>CryptoQuant CEO Ki Young Ju said that while some corrections could occur, $20,000 would likely be overtaken. Ki <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1331287848851435521\">said<\/a>:<\/p>\n<blockquote><p>\u201cOTC markets are still active. $BTC Fund Flow Ratio hit the three-year low a few days ago. Only 3% of transactions are used for exchange deposits\/withdrawals on the network. We might have corrections, but I think it would eventually break 20k.\u201d<\/p><\/blockquote>\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\/3-reasons-why-bitcoin-price-faces-a-major-hurdle-at-20-000\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why Bitcoin price faces a major hurdle at $20,000 &#8221; The price of Bitcoin (BTC) hit $19,469 on Coinbase, reaching its highest point since its December 2017 peak. Although the dominant cryptocurrency is close to surpassing its record high, there are some warning signs to take note of. Three potential reasons Bitcoin&#8230;<\/p>\n","protected":false},"author":1,"featured_media":119442,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/f8514a47-38c3-4dfb-953a-02817ccc90cc.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74863,75012,74939,73785],"class_list":["post-119441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-derivatives","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/119441","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=119441"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/119441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/119442"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=119441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=119441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=119441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}