Bitcoin (BTC) May Soar to $13,800, Two Reasons Why

By Dalmas Ngetich
Published January 16, 2020 Updated January 16, 2020
Best Buy In

DeFi Platform

Exchanges

Wallet

Bitcoin BTC
Image Courtesy of Public Domain Pictures

Bitcoin (BTC) May Soar to $13,800, Two Reasons Why

By Dalmas Ngetich
Published January 16, 2020 Updated January 16, 2020

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

Bitcoin BTC Market Performance
Bitcoin BTC Market Performance

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.

Bitcoin BTC Weekly Chart for Jan 16
Bitcoin BTC Weekly Chart for Jan 16

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

Bitcoin BTC Weekly Chart for Jan 16
Bitcoin BTC Weekly Chart for Jan 16

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.

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.

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Dalmas Ngetich
335 Articles
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

Loading Next Story