Bitcoin (BTC) could gallop higher to $13,800, or 2019 highs, if price action is anything to go by. Following a successful week, BTC is now trading at around $8,700, and looks likely to close the week higher, above an important liquidation level for the first time since September 2019 when bulls faltered causing prices to collapse to around $6,500.
Hints from the 20-week Moving Average
Participants are pumped and candlestick arrangements point to more upsides if attention is shifted to the 20-week Moving Average (MA) and coinciding technical including price reactions at key Fibonacci retracement levels.
The MA may be a lagging indicator but is nonetheless used by thousands of traders while Fibonacci retracement has over time proven its significance as price action often react before resuming trend at marked out levels.
Building on late December 2019 gains, bulls have their strong foot forward. For the first time since September 2019, BTC/USD price is above the critical liquidation level. The breakout is also accompanied by decent trading volumes.
Since September, bulls, despite sharp rallies in smaller time frames didn’t break above this level. There were attempts in late October 2019 but bullish momentum stemming from President Xi Jinping blockchain-positive speech quickly dissipated as prices steadily fell before plateauing in December 2019.
What Fibonacci Retracement Points to
The consolidation also coincided with the 61.8% Fibonacci retracement level of 2019 trade range. Notably, after impressive performance of H1 2019, traders were net bullish and didn’t expect prices to retrace in the second half of the year.
The reaction at the 61.8% Fibonacci retracement level marked the beginning of the present momentum that has seen prices close above the 20-week MA.
If projections are made based on Fibonacci retracement historical developments, odds are high that BTC will soon lift off to June 2019 highs of $13,800 in a wave that would further feed buy and cement the existing bull sentiment.
Bitcoin Bullish Investors
Similar developments in the daily chart point to bulls. According to analysts, the BTC price has already broken an important resistance trend line and a rally to $9.2 – $9.6K zone is highly likely.
Is the $BTC bear trendline broken? It’s decision time if you ask me.
If just looking at the trendline then looks like yesterday was a clean break.
However the parallel channel is a lot closer. I’d love to see another leg up to $9.2 – $9.6K then pull back into a golden cross👀 pic.twitter.com/deOfhNmn3N
— Financial Survivalism (@Sawcruhteez) January 15, 2020
Also, a Twitter poll by Alex Kruger, a BTC analyst, reveal that most respondents expect better prices going forward. 47% say Bitcoin will likely close the year above $20k.
Crypto Twitter is feeling very bullish. 47% of respondents think the high of the year will be above $20,000. https://t.co/eFyPM0SXsm
— Alex Krüger (@krugermacro) January 15, 2020
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich