Bitcoin is on the Cusp of Seeing an Explosive Rally as Bulls Shatter $20k Resistance
- Bitcoin is officially trading at the highest prices it has ever seen, with today being a monumental day for the cryptocurrency
- This historical milestone has come about following multiple attempts, and failures, at breaking above $20,000
- The eventual break above this level could now spark an epic short-squeeze that liquidates all the $20,000 limit-short orders that bears had set
- One trader is now noting that the break above this level is highly likely to be sustainable, as the resistance around $20,000 had been degrading for the past couple of days
- There is now a strong likelihood that a cascade of short-side liquidations could cause the crypto to rally significantly higher
Bitcoin and the rest of the cryptocurrency market are currently caught within the throes of an intense bull market, which comes as Bitcoin sets fresh all-time highs at over $20,000 today.
The cryptocurrency has so far climbed as high as $20,800, but there is limited resistance above the key $20,000 level, making it fairly easy for the cryptocurrency to navigate higher.
Because a cascade of short-side liquidations is also contributing to the crypto’s buy-side pressure, there’s a strong possibility that it continues running until it reaches a psychologically significant level, like $21,000.
Bitcoin Sets Fresh Highs as Uptrend Gains Momentum
Bitcoin is currently rallying parabolically, with the number going up just about every other second.
The selling pressure seen throughout the lower-$20,000 region appears to be non-existent, with this breakout rally inducing panic buying amongst bears.
At the time of writing, Bitcoin is currently trading up 6% at its current price of $20,750. This marks a massive surge from its recent lows of $17,600 set just a few days ago.
BTC Likely to Be Bolstered by Short Liquidations
One trader explained before this morning’s break above $20,000 that a firm move past this level will create a cascade of sell-side liquidations that cause the cryptocurrency’s price to rocket higher.
“Binance is desperate to save their underwater shorts. Perps starting to go in overdrive though. This is gonna be a serious battle, but if 20k breaks… The squeeze will be epic.”
Image Courtesy of Byzantine General.
We already see the impacts of this, with this latest Bitcoin push potentially marking the start of the cryptocurrency’s next parabolic uptrend.
Featured image from Unsplash. Price data from TradingView.
OhNoCrypto
via https://www.ohnocrypto.com
Cole Petersen, @KhareemSudlow
