The bitcoin price is erupting higher once again after it surmounted the resistance at $17K in yesterday’s sessions.
The benchmark cryptocurrency now seems to have entered the “blow-off top” phase of the market cycle. The coin’s value has exploded by hundreds of dollars higher over the span of a few hours and shot to $18,300 earlier this morning.
BTCUSD is currently trading at $18,000 after a slight retracement, which are highs not seen since the previous bull market in 2017 and 2018.
BTCUSD Chart by TradingView
Bitcoin is now following a bullish path as the bulls remain firmly in the driver’s seat. The pair remains well supported above the $18K resistance, and analysts will be watching to see it can flip this level into support.
An intermediate resistance sits near $18,250, above which BTC could rise higher toward the $18,400 level in the near term.
Analysts Expect Further Gains Ahead
The Bitcoin price is expected to move even higher in the days and weeks ahead despite fears that the market is starting to show signs of short-term overheating.
A prominent crypto-asset analyst earlier commented on the ongoing rally. Josh Rager shared the sentiment that BTC could move toward the previous all-time highs as it smashes key resistance levels:
“Bitcoin is shredding each resistance on the daily and high time frames With a close over $17,150, the next major daily/weekly resistance would be at $18,953 to $19,187.”
Similarly, on-chain analyst Cole Garner projects that BTC will see a further uptick. He cites on-chain trends and market trends such as the funding rate and the open interest of futures markets.
Garner explained that the BTC market’s aggregated funding rate remains low, suggesting limited long taking from investors. This trend gives credence to the ongoing rally since the number of long positions relative to short positions typically points toward a market top.
The ongoing parabolic rally even prompted analyst Cactus to suggest that the world’s leading crypto would never dip below $10K again.
BTC Sees Rapid Capital Inflows
Prominent fund managers on Wall Street are showing increasing interest in Bitcoin, indicating that smart money is warming up to the digital asset as a lucrative investment vehicle.
As we reported on Nov 14, crypto asset management firm Grayscale Investments increased its BTC holdings by $300M. The firm now holds 506,000 BTC, accounting for more than 2% of the global Bitcoin supply.
Ricardo Salinas Pliego, the second wealthiest man in Mexico, has also revealed that he invested 10% of his “liquid portfolio” in Bitcoin.
2020 is turning out to be a stellar year for BTC, given the high level of adoption from the billionaire class and institutional players.