Bitcoin bulls now in control – analyst sees parabolic rise for 2021
- Bitcoin is officially in full parabolic rally mode, with the cryptocurrency’s recent breakout above $20,000 paving the way for a massive surge.
- The price rose as high as $23,700 overnight before suffering a steep rejection that saw it fall to a low of $22,400.
- Buying pressure at this point was very strong and has kept the price rising ever since.
What is important here is that although the cryptocurrency has experienced rejection, it is clear that the increasing hype around it has led to inflows of dip buyers.
- One trader now notes that BTC is likely to form a local top in the near future after this immense parabolic upswing.
- He believes this will lead to BTC entering true price discovery mode in a few weeks as 2021 approaches.
Bitcoin and the entire Bitcoin Future crypto market have been trapped in immense sideways trading in recent days and weeks.
Selling pressure in the upper $23,000 region has proven to be quite intense, resulting in two pullbacks over several hours.
One trader believes this could ultimately mark a local top for the cryptocurrency, potentially allowing for a short-term consolidation before we see an explosive rally higher in 2021.
Bitcoin explodes higher – bulls take full control
Currently, Bitcoin is trading at $23,000. This is roughly the price at which it has been trading in the last few hours.
It has experienced rejection at both $23,700 and $23,300. If BTC continues to struggle to break out above either of these levels, the cryptocurrency could fall or consolidate in the near future.
One trader writes in a tweet that Bitcoin (Buy Now? Go here for instructions) is likely to hit a local top in the near future, which could lead to BTC experiencing a consolidation before a real price discovery in 2021.
“Slept through the last rise but the way BTC is respecting the Fibs makes me very keen on the idea of trading this price discovery in 2021. For now though – local top should be there, time for alts”
The coming days should shed some serious light on the long-term significance of the recent rise – and whether Bitcoin will extend its bull run as early as 2020 or as late as 2021.