Well, beating all odds, Bitcoin (BTC) has finally moved past $16,000 levels for the very first time after the 2017 bull run. At press time, Bitcoin (BTC) is trading at $16,070 with a market cap of $297 billion. There was a major resistance for Bitcoin at $16,000 levels and analysts are pointing out further bullish momentum on charts.
#Bitcoin just broke out a $16,000 resistance line.
Looking for a longer time frame confirmation candle, but it's looking extremely bullish. pic.twitter.com/CEm9qQNyeB
— WealthTrader (@trader_wealth) November 12, 2020
Moreover, some of the other market analysts are pointing out that the breakout above $16,000 would lead to a rally up to $16,400 or $16,800 levels. Some of the popular crypto market analysts are also pointing out the on-chain relative strength index (RSI) and notes that it is building up momentum for the next rally.
Green circle denotes where we are in this macro cycle. Start of the main bull run (in case it isn't already obvious).
BTC's on-chain Relative Strength Index is just warming up.
Red verticals are the halvenings, providing the bullish supply shock impulse. pic.twitter.com/HudOgAAezv
— Willy Woo (@woonomic) November 11, 2020
At present, the Bitcoin RSI is currently above 70. In a normal market, it means that the asset is in the overbought regions. However, popular analyst PlanB explains that for Bitcoin, an RSI of above 90 only means that it is overbought and we still have a long way to go. In the latest tweet, PlanB wrote:
“In other normal markets RSI>70 is overbought (and a correction is due) and RSI<30 is oversold (signaling a good moment to buy). But for bitcoin that range seems to be RSI>90 overbought and RSI<50 oversold (see chart, note color overlay). So, we have a long way to go until 90”.
Another analyst Joseph Young noted that several on-chain indicators point towards an organic rally. He wrote:
“Bitcoin passes $16k yet not a lot of short liquidations in the derivatives and futures market. Many on-chain indicators point toward an organic rally. Last week, many miners and whales sold/took profit as well. Strong demand, strong high time frame momentum”.
Over the last week, Bitcoin has been more or less consolidating at $15,800 levels while facing strong resistance at $16,000. Despite the selling pressure, it has successfully managed to breach the levels today. Bitcoin continues to receive a huge endorsement from some of the biggest investors of the global financial industry.
It’s about time that we might see an institutional money rain in BTC taking it way past its all-time high of $20,000.