A short-term slipover in recent sessions has not refrained Bitcoin from eyeing $20,000 by the end of this year.
Independent financial analysis firm TradingShot wrote in its recent analysis that it sees the cryptocurrency recovering its all-time high in 2020. The agency cited two technical setups that have dictated the Bitcoin price behavior in the last 1.5 years, adding that their validation for the rest of this year could push the cryptocurrency towards $20,000.
Meanwhile, the Hyperbola resistance received additional strength from Pitchfork, the second technical indicator containing a string of Fibonacci levels acting as supports and resistances during Bitcoin’s uptrend. The chart below shows the two setups operating in unison.
TradingShot offered a trading setup:
“Every contact with that Hyperbola (even the marginal miss) ended up with a pull-back that ranges from the 0.236 Fib to as low as 0.618 Fib (not counting the March 07 – 12 COVID meltdown which is non-technical). The trend-line we need to keep an eye on is the 40° angle from each bottom.”
‘When this breaks, the price pulls back. This can take place above the Hyperbola and the 0.236Fib, so be ready to apply it,’ he added.
TOPPING AT $20K
The bullish momentum – again – expects to get exhausted near the parabola. Only this time, the curve is sitting near the $20,000-level.
“[We] get the impression that if the 0.236 Fib breaks, the ATH ($20,000) before the start of 2021.”has enough strength to allow a move to the
Bitcoin was trading near $15,500 at the time of this writing.