As Bitcoin (BTC) continues to rally to a new 2020 high above $16,700, traders are pondering whether this is the start of a new bull market.
Mike McGlone, senior commodities strategist at Bloomberg Intelligence, believes that the main hurdle is at the all-time high near $20,000. Once that is crossed, Bitcoin could reach a $1 trillion market capitalization. McGlone anticipates the uptrend to continue in 2021, and there are a growing number of analysts who agree with his view.
Veteran trader Peter Brandt also believes that if previous bull runs are considered, Bitcoin is in the early stages of its next bull cycle.
In another bullish projection, Citibank managing director Tom Fitzpatrick believes that Bitcoin could rally to $318,000 by December 2021. Fitzpatrick arrived at this forecast by considering the previous bull markets in Bitcoin.
Every bull phase witnesses considerable corrections on the way up, and these provide opportunities for traders to sell high and buy again during dips. However, in order to do this, traders have to time their trades, otherwise they may miss out on the move.
Let’s analyze the top 10 cryptocurrencies to spot any bearish or bullish setups that could project the next possible move.
In a strong uptrend, corrections usually do not last more than three days. This can be seen in Bitcoin’s rally that started in early October. The bulls have pushed the price above the overhead resistance at $16,500 and resumed the upward move.
The BTC/USD pair could now rally to the next significant resistance at $17,200. Here again, the bulls may have to overcome strong selling by the bears because once the buyers clear this resistance, there is no major hurdle until the all-time highs.
The rising moving averages and the relative strength index in overbought territory suggest that bulls are in control. There is no negative formation on the chart that warns of a possible top at the current juncture.
Still, traders should be careful and not get carried away with