Bitcoin Price Analysis: BTC/USD Journey To $20,000 Begins As Cup And Handle Pattern Forms

  • Bitcoin price eyes $12,000 followed by $14,000 after a break past the three-year downtrend resistance line.
  • BTC/USD cup and handle formation suggest that this rally is unstoppable towards $20,000.

Bitcoin price rally has officially commenced following eight weeks of tight range trading. The bulls are still building on weekend gains that saw Bitcoin breach the $10,300 mark for the first time in three months. BTC/USD extended the action above $11,000 as predicted by Coingape.

At the time of writing, Bitcoin is teetering at $11,199. It has breached several key resistance levels including $10,500, symmetrical triangle resistance as well as $11,000. The formation of a cup and handle pattern on the weekly chart shows that Bitcoin is at the point of no return. The engulfing candle above the triangle resistance clearly shows that eyes are first on the seller congestion at $12,000 followed by $14,000.

In other words, Bitcoin is still in a strong buy zone because the rally the seemingly awaits it is a massive (resembling the rally in 2017). This will mean that Bitcoin is finally going to break the three-year downtrend resistance line. All eyes are on $20,000 as the year 2020 gradually draws to an end. In the following year, according to an analyst on Tradingview, Bitcoin would have the potential to hit new all-time highs. FlaviusTodorius67, the analyst writes that:

It will lead to 20k this year, and to new all-time highs next year. The target remains at around 100k, possibly more with luck.

DXY is falling, inflation rising, gold also pumping, macr-economically everything aligns perfectly. Then also halving still in play. Also, number of daily transactions rising sharply.

Fasten your seatbelts, because if we go over 10.5k, this is it. Then it has started.

BTC/USD weekly chart

BTC/USD price chart by Tradingview

Meanwhile, all technical indicators point towards a continued rally for Bitcoin in the near term. The RSI in the Weekly timeframe is almost hitting the overbought while the MACD is featuring a bullish divergence in addition to being in the positive territory.

Read moreBitcoin [BTC] Crosses $10,000 7th Time This Year, Is this the Real Deal?

Bitcoin Intraday Levels

Spot rate: $11,060

Relative change: 11.25

Percentage change: 0.01%

Trend: Bullish

Volatility: High

 

 

 



from Coingape https://coingape.com/72726-2/

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