Bitcoin (PTC) starts a new trading week within 5% of the legendary $ 20,000 price level – but can it go there this time?
As the largest cryptocurrency queue for another shot to cross the Seminal resistance, Cointelegraph on Monday sees market factors affecting price performance.
Vaccination, induction results in fuels risk appetite
At a broader macro level, the talk is firm on the acceptance of a corona virus trigger package in the United States this week.
A major test of the dollar’s strength, a government aide told the mainstream media that there was “no guarantee” that the talks would be successful, but that the package under discussion was worth about $ 900 billion.
As Cointelegraph reports, this will have benefits for a variety of economic sectors, but will not be subject to a second stimulus test, mainly for ordinary Americans.
The prospects for both a trigger package and a vaccine roll helped lift a flagging dollar, but in the meantime, risk assets are recovering.
These include stocks, as the Japanese market fell to a two-year high in early trading on Monday. Oil is hovering around $ 47 a barrel amid hopes that the vaccine will trigger new demand.
For Bitcoin, however, any major stimulus to the US dollar has always been of concern – 2020 is characterized by the reverse relationship between the PTC and the US dollar currency index (DXY).
However, at press time, the DXY was once again falling from 91 points, not far from its lowest level since April 2018.
This week the US Federal Reserve will also see new guidance on its viral-related economic response, with the dollar moving gradually with no major upgrades.
BTC price regains significant resistance
Within Bitcoin, what is a relatively recent phenomenon for weekend price action – more happening on Saturdays and Sundays than during the week.
After a sluggish five-day trade, the PTC / USD rallied after Friday, rising from $ 18,000 to $ 19,400.
The move is transparent, with new profits leading to another round of confidence votes from a variety of accustomed investors.
“Bitcoin quietly diptoing above K 19K. No big deal. Nothing to see here, ”said Gemini Exchange co-founder Cameron Winglevos Sunday briefly.
At press time, the PTC / USD circled 19,150 and saw its rally at 19,400 at the start of the Upper Opposition. Level is very important, which corresponds to a firm selling pressure on the $ 600 window, which ends at the omnipotent $ 20,000.
An earlier attempt to withdraw $ 20,000 quickly failed, resulting in a low of 17,550 last week. If you look at the transfer orderbook data, it shows the sales auctions in one place. Conversely, $ 20,000 should finally be broken, there is little resistance up to 22,000 – currently the final price ban on Bitcoin.
“We see that we have created another high, which in the coming weeks will break 4 19,400-, 500 19,500 and reach a new all-time high,” said Michael van de Pope, analyst at Cointelegraph Markets. Update Sunday.
“However, traders should be aware that a ‘fake out’ is likely to occur above this recent rise, thereby starting to use a drastic difference, and limited continuity is possible.”
# Bitcoin Marching towards the all-time high region over the weekend.
What are the important positions to look for? This short video Ry CryptomycNL Explains the levels.
Full analysis: https: //t.co/o9pJSBgrlU pic.twitter.com/3dTlFJGei0
– Cointelegraph Markets (oCointelegraphMT) December 13, 2020
Joins another $ 1,000 future break party
Meanwhile, in the face of optimism of a $ 20,000 collision, the weekend has unleashed another “gap” in Bitcoin’s futures markets, putting pressure on the downside.
At around $ 1,000, the difference between Friday’s close and the opening of Monday’s trading for CME Bitcoin futures markets provides a low price target of 18,100.
Cointelegraph As mentioned earlier, these “gaps” are traditionally filled as they appear, but the size of the two now open presents difficulties. The previous $ 1,300 gap, almost unmatched, was only half closed with 17,550 runs.
“Remember, the PTC CME futures gap will have to close at 9,16,925 before we can see all the new all-time highs,” the forex trader said. Justin Bennett, The founder of the Daily Price Action, said of that gap.
In his analysis for the Cointelegraph, Van de Pope similarly cited it as a continuous phenomenon for tracking gaps.
“The new CME gap will be created as the latest closing price is 18,115. Therefore, this future gap will become a significant point for entry or exit, which is why such gaps are often filled with a self-fulfilling prophecy,” he confirmed.
“There are two open CME gaps from the latest price action. The first one is not fully filled as there is still open space for Open 17,015. The second will generate $ 18,115 due to the positive price action over the weekend.”
Institutional interest elevates the image of bitcoin
The corporate rise in the meantime continues to provoke sentiment and give positive publicity to Bitcoin in the mainstream.
The announcement last week from MassMutual, an insurance fund that includes a $ 100 million quota, led to praise for JP Morgan, a former Parama Bitcoin suspect. It was not lost on the broader establishment, citing the bank’s strategists and Bloomberg predicting further acquisitions.
“MassMutual’s Bitcoin acquisition marks another milestone in the adoption of Bitcoin by institutional investors,” one said.
“One can see the potential demand that may arise in the coming years as other insurance companies and pension funds follow the mass mutual model.”
Markets Commentator Holger Schabitz MassMusual later noted that focusing on a “traditional investor” causes a certain stir.
“Holcoiner” wallets hit registration numbers
However, away from the big players, the evidence for “big buy” is growing.
According to the statistics of the on-chain analysis resource Glassnote, The number of Bitcoin wallets containing a whole currency or more is new all the time. As of Sunday, there were approximately 827,000 wallets with 1 PTC or more in reserve.
The difficulty in earning the entire unit of Bitcoin between corporate investment descriptions has become an increasingly sensational topic on social media. This is coupled with data showing that despite recent price hikes, currencies are leaving exchanges for cold storage.
As a result, investor sentiment is measured as long-term “HODL” rather than short-term speculation.