{"id":124432,"date":"2020-12-02T11:13:20","date_gmt":"2020-12-02T08:13:20","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-one-analyst-says-bitcoin-is-on-the-cusp-of-busting-through-20k\/"},"modified":"2020-12-02T11:13:20","modified_gmt":"2020-12-02T08:13:20","slug":"why-one-analyst-says-bitcoin-is-on-the-cusp-of-busting-through-20k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-one-analyst-says-bitcoin-is-on-the-cusp-of-busting-through-20k\/","title":{"rendered":"# Why one analyst says Bitcoin &#8216;is on the cusp&#8217; of busting through $20K"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a23a2923d739\" 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-6a23a2923d739\" 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-one-analyst-says-bitcoin-is-on-the-cusp-of-busting-through-20k\/#Bitcoin_sees_a_%E2%80%9Cminor%E2%80%9D_10_drop\" >Bitcoin sees a &#8220;minor&#8221; 10% drop<\/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-one-analyst-says-bitcoin-is-on-the-cusp-of-busting-through-20k\/#Is_Bitcoin_now_on_the_cusp_of_a_major_breakout\" >Is Bitcoin now on the cusp of a major breakout?<\/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\/why-one-analyst-says-bitcoin-is-on-the-cusp-of-busting-through-20k\/#The_possibility_of_a_BTC_price_correction_persists\" >The possibility of a BTC price correction persists<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Why one analyst says Bitcoin &#8216;is on the cusp&#8217; of busting through $20K <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The market sentiment around Bitcoin (BTC) is mixed as BTC price dropped almost im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely by 10%\u00a0right after hitting its previous all-time high at $19,892 on Dec. 1. <\/p>\n<p>Nevertheless, some analysts and fund managers anticipate the dominant cryptocurrency to rise past $20,000 in the short term. But others are adamant that there will be another correction first as seen in previous bull cycles.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_sees_a_%E2%80%9Cminor%E2%80%9D_10_drop\"><\/span>Bitcoin sees a &#8220;minor&#8221; 10% drop<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are many compelling reasons to believe that a deeper Bitcoin correction is coming. In the past, multiple 30% to 40% pullback accompanied major uptrends such as in 2017. Thus, the current BTC correction of roughly 10% from the new all-time high is relatively minor by comparison.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/9ec0825b-d6c2-4a64-bfec-d9789ad472a8.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD weekly chart (Bitstamp). Source: Tradingview<\/em><\/figcaption><\/figure>\n<p>Meanwhile, Mohit Sorout, the founding partner at Bitazu Capital, argues that Bitcoin could soon enter a bigger multi-month rally. He emphasized that the medium-term outlook of BTC remains highly positive despite the price failing to break the key psychological $20,000 barrier upon its first attempt.<\/p>\n<p>Bitcoin price was rejected right before $20,000 with a strong reaction from sellers across the spot market. As Cointelegraph reported, on-chain analysts attributed the drop to a combination of miners and whales selling.<\/p>\n<p>The futures market took a hit as well following\u00a0the initial spot-driven sell-off. The derivatives market was already overheated before the drop reaching as high as $23,000 on the Chicago Mercantile Exchange, alongside a surging BTC futures funding rate and a record high Fear &amp; Greed Index of 95.<\/p>\n<p>Since the market was swayed towards buyers, this meant that if a minor drop occurs, the probability of a larger drop caused by cascading liquidations was high. This resulted in the drop that resulted in BTC bouncing off the $18,000 support area.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_Bitcoin_now_on_the_cusp_of_a_major_breakout\"><\/span>Is Bitcoin now on the cusp of a major breakout?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>However, some analysts now expect BTC to break past $20,000 upon the next attempt.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/ed1b3796-f4b3-4e09-b6df-535116fc4351.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin monthly chart with RSI and DMI. Source: Mohit Sorout, TradingView.com<\/em><\/figcaption><\/figure>\n<p>Specifically, Sorout pinpointed the Relative Strength Index (RSI) of Bitcoin\u2019s 1-month chart. It shows that in spite of the recent uptrend, the RSI is at 69, which is neutral. An asset becomes overbought if it surpasses 75 on the RSI indicator. He said:<\/p>\n<blockquote><p>\u201cZoomed out &amp; couldn&#8217;t help but notice #Bitcoin is on the cusp of a truly special multi-month rally.\u201d<\/p><\/blockquote>\n<p>Additionally, a pseudonymous cryptocurrency derivatives trader known as \u201cFlood\u201d echoed this sentiment. He said that a strong rally after a fakeout rally to the all-time high is not unlikely. He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/ThinkingUSD\/status\/1334023496410701831\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cATH fakeout followed by actual ATH would be classic. Longed $BTC here 18800.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"The_possibility_of_a_BTC_price_correction_persists\"><\/span>The possibility of a BTC price correction persists<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Other traders, however, believe that the probability of a correction would continue to increase if Bitcoin consolidates under $19,000. <\/p>\n<p>Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said that weakening momentum increases the likelihood of a pullback.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The likelihood of a correction is slowly increasing. <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a><\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1334011248963440641?ref_src=twsrc%5Etfw\">December 2, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Technically, an argument could be made that the bull run of BTC is indeed overextended. After the past two minor pullbacks, lower time frame charts, like the 4-hour and 1-day charts, show Bitcoin treading closely above short-term moving averages (MAs). This signifies that BTC is not overbought on lower time frames.<\/p>\n<p>However, on the weekly and the monthly chart, Bitcoin is still significantly above short-term MAs, which indicates a large correction could occur.<\/p>\n<p>As Cointelegraph reported, some traders have said that a correction to around $13,000 should not come as a surprise for this reason as previous bull cycles have shown. If BTC drops further, the major support areas should be found at $13,000, $13,800 and above $15,000 on the high time frame charts.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\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-one-analyst-says-bitcoin-is-on-the-cusp-of-busting-through-20k\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Why one analyst says Bitcoin &#8216;is on the cusp&#8217; of busting through $20K &#8221; The market sentiment around Bitcoin (BTC) is mixed as BTC price dropped almost immediately by 10%\u00a0right after hitting its previous all-time high at $19,892 on Dec. 1. Nevertheless, some analysts and fund managers anticipate the dominant cryptocurrency to rise past&#8230;<\/p>\n","protected":false},"author":1,"featured_media":124433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/df99d1cd-2e57-4540-83e2-5cd77a74b955.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74939,73785],"class_list":["post-124432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/124432","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=124432"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/124432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/124433"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=124432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=124432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=124432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}