Bitcoin has recently recorded price near its all-time high of $20k. On 24 November 2020, the cryptocurrency recorded a price index of $19,300 which is the second highest price ever recorded in a single day trading session. The highest of course is the $20k that was witnessed back in January 2018, around 35 months ago. With the price index nearing all-time high levels, traders expect the all-time high of $20 in the near future and set new records during the course of the bull run.
The sell wall around the $19k level was being seen apprehensively by traders and many believed that it would take time and some monumental effort for Bitcoin to surpass it. However, surprisingly, the so-called $19k sell wall has been overcome rather easily and traders aren’t sure about the sell wall anymore. What happened was that analysts found a range of big sell orders above $19k and that is why many predicted a sharp price decrease after $19k was breached. While the price index did experience somewhat of a drop but it stopped short at around $18200 and then bounced back.
The Bitcoin price index has experienced a considerable price increase during the last month which is the highest dollar amount increase ever witnessed in the history of the cryptocurrency. The price index started at around $11k and reached $19.3k, showing a $8.3k increase. Previously, even back in 2017, the cryptocurrency reached new levels and expanded the all-time high figure. However, such a price rally has never been witnessed in a calendar month. While in percentage points, the cryptocurrency has experienced a much bigger price increase before, this is the biggest dollar amount jump ever seen.
Apart from the dollar increase, the cryptocurrency’s price index did have a strong last three weeks too. According to analyst PlanB, Bitcoin was in for a much stronger price increase in the near future. It was because the Relative Strength Index (RSI) was still not in overbought conditions. Normally, overbought conditions mean that Bitcoin’s price is under pressure to shed some value. However, despite the astronomical price increase, the cryptocurrency’s value is still pointing upwards which is incredible.
Overall, the cryptocurrency is still heavily biased in favour of bulls despite a historic price increase and that is new for the trading community. A psychological barrier, however still exists around the $20k level so it might take some time to overcome it. However, once it is done, the sky is the limit for Bitcoin especially with the record investment being done at an institutional level.
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