Bitcoin at “Last Line of Defense” Before ATH as it Hits $19,300: Analysts

Bitcoin price surpassed $ 19,300 again after falling to $ 16,200 on November 26th. After BTC’s surprising intraday rally, analysts are preparing for an all-time high.

There were compelling arguments in favor of bearish and bullish short-term forecasts for BTC. Most notably, when BTC fell to $ 16,200, it broke out of the recent parabola. This meant that BTC was facing either a major correction or the start of a new uptrend.

Given the strength of BTC’s upward move, market trends indicate that a new parabolic rally may begin.

The daily price chart of Bitcoin. Source: BTCUSDT on TradingView.com

What Happens If Bitcoin Breaks $ 19,400?

There are two main scenarios for Bitcoin in the short term. Initially, BTC breaks $ 19,400, moves towards the all-time high and tests the $ 20,000 level.

Second, BTC rejects $ 19,400 again, enough for the short term, and consolidating as it tries to break out again

However, if Bitcoin rises above $ 19,400, a technical analyst and trader named Bitcoin Jack said an all-time high becomes more likely. He said::

“I hate to say it, but BTC is literally on the last line of defense before ATH volume increases. ”

Why BTC Rose So Fast

The main reason for Bitcoin’s current rally appears to be a large short squeeze.

Before the rally, BTC had large short positions on major cryptocurrency exchanges, including Binance Futures.

When a short position is liquidated, it forces the holder to buy the position in the market. Hence, shorts can become a short-term buyer demand for BTC in a short period of time.

A pseudonymous trader known as the “Byzantine General” said::

“[Binance] goes into round 2. Coinbase & Finex have entered the chat. 18900–19000 will be a bloodbath. “

In the short term, the two main resistance levels for Bitcoin are $ 19,400 and $ 20,000, both of which would likely see a strong reaction from the market.

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