Will Bitcoin's Rally Potentially Start a Bull-Run?
Bitcoin already had a pretty good start for 2020 with hashrates reaching a new all-time-high yesterday. With multiple different events on the horizon in 2020, Bitcoin's year could go from good to amazing. This includes Bitcoin's upcoming halving event, current American Iranian geopolitical tensions, and uncertainty with the upcoming US elections.
Gold has recently hit a 6-year high, with many believing its rally will continue. This seems to indicate that investors are looking for an alternative to the US Dollar. Bitcoin could very well follow gold's footsteps and retrace previous highs of above $10,000 or perhaps $15,000.
Currently Bitcoin has gained 4.21% in the past 24 hours and is trading at $7,905. Its rates have been bouncing between upper levels of $8,000 to lower levels of $7,000 since December. This latest rally has been an attempt to break upwards resistance levels and head above $8,000.
The biggest question is now: Will the rally continue?
For that, lets have a look at the charts.
Bitcoin (BTC) Weekly Review
So, here's our weekly review for Bitcoin.
It had a great move, perfectly matching our previous forecast.
7.9k-8.1k is a very serious horizontal level, which lasts from November 2017 as you remember, the 100-Day MA is in line with the downward channel resistance and coming up right there + the 50-Week EMA + itâs 0.382 Fib (from the 5k low to 11k high). So, 7.8k region is a tremendous confluence of resistance and breaking above it would mean a lot for the bulls. We need a higher high for confirmation, however.
If we do not manage to break that Resistance Level and pull back to 0.5 Fib at 6.6k - be ready for sub 6k prices.
We can spot few indicators on 1D chart are showing us amazing development. It can push Bitcoin higher until it will meet Dynamic resistance reaching the price of 9000 in a best-case scenario.
MACD just crossed Zero Point and it is bullish.
ADX & DI are very carefully confirming bullish movement.
RSI is certain in its perfect bullish strike and will keep us well informed were exactly price will be trying to create its double top on the very nearest resistance level.
Special thanks to Senin for his technical analysis expertise.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado