After flatlining throughout the start of 2020, Bitcoin (BTC) bulls finally seem to have taken control as the number one crypto asset went from jumped from the $9200 region and hit a 2020 high at $11,700 in less than 2 weeks’ time as it broke above the descending trend line.
The DeFi-induced bull run was further boosted by political tension between America and China that saw safe-haven assets, including Gold, pushed the crypto market upwards the past week.
Furthermore, CME Bitcoin futures saw its most active session for the year over the past week, with open interest climbing to record highs, hinting at the increased institutional appetite for BTC.
For most crypto traders, BTC breaking past $11,500 was a bullish move more the cryptocurrency as it laid the foundation for further upside moves.
One crypto trader going by the name of Pierre – Frenchy, noted that if BTC reclaimed $11,500 on a weekly and monthly time frame, the path to its all-time high at $20,000 would have little resistance.
“Few hours to go before a massive monthly close. Few days to go to close the weekly above 11.5k.I personally wouldn’t have any problems with the Ear of maize hovering between 10k and 11.5k if that’s what needed for sustainable growth to ATH,” he tweeted.
Another analyst pointed out a “structural fractal” that takes into consider all previous bull cycles, highlighting that this would result in a major rally.
As of now, Bitcoin charts look parabolic and the last two times BTC showcased this pattern was in November 2017 and June 2019. In just 2-4 months, BTC has doubled its value, so high volatility and faster moves can be expected this time.
As Cameron Winklevoss had stated earlier:
“The next Bitcoin bull run will be dramatically different. Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!” he said.
Crypto advocates are now turning heavily bullish about BTC claiming that the highly anticipated push to reclaim $20,000 and set new highs have begun.
According to Simon Dedic, co-founder of crypto research firm Blockfyre, the bull run this year is going to be on a “whole other level” because the market has greatly matured since 2017 with new investment products.
Danny Scott, CEO of Uk-based crypto exchange CoinCorner, noted:
As of now, Bitcoin has surpassed the crucial resistance at $11,600 and is currently trying to break past an ascending trend-line.
If the price closes above this resistance on the daily, the rally is expected to continue towards the resistance at $11,800 and ultimately break the psychological resistance at $12k.
The next major resistances lie at $12,300 followed by $12,500. If we see a pullback, $11,600 and $11,400 is the crucial support before descending down to $11,000 and $10,800.
At the time of writing, BTC is trading at $11,666 and is up 27.4% on a 7 day timeline.