Bitcoin price just had its first decent-sized pullback since making it above $16,000. Less than 48 hours later, the cryptocurrency was already trading well above $18,000.
In the late-night spike last night, the seemingly parabolic crypto asset touched a new 2020 high of $18,474 on Binance, before falling back to $17,800 where the resistance zone begins. Is this the first possible peak before a short term pullback to gather more strength to take out $20,000? Or is there no need to refuel due to how incredibly bullish Bitcoin is in 2020 and $17,800 is now strong support?
Bitcoin Takes Out $18,000: Retreat Or Reversal?
The leading cryptocurrency by market cap has defied all odds in 2020, and in the face of a pandemic and an economy on thin ice has become the best performing asset of the year.
The uncertainty and economic strain could actually be what’s benefitting Bitcoin the most, prompting investors to pour their capital into the scarce digital asset to protect wealth and adapt to the coming digital era.
Paper money is on the way out, both in design and due to its destructive tendencies. Fiat money supply is limitless, while there will only ever be 21 million BTC.
As the dollar weakens and more money supply is printed, the asset has shown its true potential. Breaking above $10,000 was the first major step in a bull run beginning, and recently, a higher high above 2019’s peak sent the cryptocurrency into overdrive.
In less than a month, Bitcoin rocketed to $18,474 at the current 2020 peak. Since then, a pair of strong pullbacks have struck, knocking bulls of balance.
Has Bitcoin peaked at $18,474 on Binance? Or will $17,780 hold as support? BTCUSDT on TradingView.com
With bulls on the ropes and Bitcoin having already been on an incredible run, the current pullback poses the first potential window for a short-term peak.
Consolidation Between $16,000 And $20,000 Expected, According To Crypto Wallet Co-Founder
Any downside will be restricted as FOMO has already started in the crypto market, but a new peak could be put off until early 2021.
In fact, Greg Waisman, co-founder and COO of Mercuryo.io expects the cryptocurrency to range for the remainder of the year, between ” $20,000 and $16,000.”
But once the previous high of $19,892 is taken out, Waisman says that the two next logical targets for pullbacks reside at the “127.2% and 141.4% Fibonacci retracement levels,” which translate to roughly “$24,500 and $26,830, respectively.”
Getting above those two levels, however, could be the breaking point at which Bitcoin goes parabolic. But this could not happen until 2021 due to the significant sell pressure that exists near all-time high.
Featured image from Deposit Photos. Chart from TradingView.com