Bitcoin price has just had its first decent drop since topping $ 16,000. Less than 48 hours later, the cryptocurrency was already trading well over USD 18,000.
On the nightly peak last night, the seemingly parabolic crypto asset hit a new 2020 high of $ 18,474 on Binance before falling back to $ 17,800 where the resistance zone begins. Is this the first potential high point before a short-term retreat to gain more strength and take out $ 20,000? Or don’t you need to refuel because Bitcoin is incredibly bullish in 2020 and $ 17,800 is now strong support?
Bitcoin Brings Out $ 18,000: Withdrawal Or Reversal?
The leading cryptocurrency by market cap bucked all odds in 2020 and has become the top performing asset of the year in the face of a pandemic and an economy on thin ice.
The uncertainty and economic burden could actually be what bitcoin is doing the most, driving investors to put their capital into the scarce digital wealth to protect wealth and adapt to the coming digital age.
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Paper money is on its way out, both in design and due to its destructive tendencies. Fiat’s money supply is unlimited while there will only be 21 million BTC at a time.
As the dollar weakens and more money is printed, the asset has shown its true potential. Exceeding over $ 10,000 was the first big step in a bull run that began, and recently a higher high above the 2019 high got the cryptocurrency into high gear.
In less than a month, Bitcoin rose from its current 2020 high to $ 18,474. Since then, two powerful withdrawals have struck, throwing the cops off balance.
Has Bitcoin peaked at $18,474 on Binance? Or will $17,780 hold as support? BTCUSDT on TradingView.com
With bulls on the ropes and Bitcoin already on an incredible run, the current pullback offers the first potential window for a near-term high point.
Any downside is curtailed as FOMO has already started in the crypto market and a new bull run is only a matter of days at this point.
Featured image from Deposit Photos. Chart from TradingView.com