- 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 experiencing a steep rejection that dropped it to a low of $22,400.
- Buying pressure at this point was very strong and has kept the price rising ever since.
- The important thing to note here is that although the cryptocurrency has experienced rejection, it is clear that the increasing hype surrounding 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 a true price discovery mode in a few weeks as 2021 approaches.
Bitcoin and the entire crypto market have been caught in immense sideways trading over the past few 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 Crypto Trader, 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 the price of $23,000. This is roughly the price it has been trading at for the past 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.
Trader: BTC will likely hit a local top soon
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 consolidation before any real price discovery occurs in 2021.
“Slept through the last rise, but the way BTC respects the Fibs makes me very fond of 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 surge – and whether Bitcoin will extend its bull run as early as 2020 or as late as 2021.