Breaking: Bitcoin rallies back above $20,000!
- Bitcoin price has risen back to $20,000
- The bulls have been up 20% since the start of the year.
- BTC could rally toward $25,000 if market conditions persist.
Bitcoin price has stunned the market, rallying by 20% since January 1. The recent uptrend move is now going on its seventh consecutive bullish day in a row.
Bitcoin price is taking off
Bitcoin price currently auctions at $20,250 as the peer-to-peer digital currency is making no hesitation to challenge the resistance levels above. January 13’s daily candlestick close above the descending trendline that acted as resistance throughout the fall is a strong gesture of bullish confidence.
The Relative Strength Index (RSI), an indicator used to assess the force of a market move by comparing previous swing points, shows the current uptrend rally breaching overbought territory. BTC has been notoriously known for trending in overbought conditions throughout the 2020-2021 bull run between 6k and 60K. Thus, FOMO (fear of missing out) is also a key component of the uptrend and likely to be a driving force in the days to come.
On January 5, the 8-day exponential moving average crossed over the 21-day simple moving average at $16,655, a shorter buy signal for a conventional trade idea targeting December 14’s swing high at $18,373. No one at the time thought the signal would be the catalyst of the current 20% rally. Nonetheless, the catalyst point could be an invalidation marker of the current uptrend rally. Bitcoin price has the potential to rally toward the recently breached trendline’s origin point at $25,200. A tag of the level would be a 25% rally from Bitcoin’s current market value.
BTC/USDT 1-Day Chart
Traders should remain focused on risk management in this highly volatile trading environment. A breach of the rallies origin point would void BTC’s bullish potential and set up a possible retest-the-lows scenario targeting the 2022 low at $15,476. The BTC price would decline by 25% if the bears were successful.
Read More: Breaking: Bitcoin rallies back above $20,000!
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