Bitcoin (BTC) has appreciated by 10 percent in the last 24 hours as per the data source CoinMarketCap. A year ago, it traded below $1,000.
A major part of the rally from $6,000 (Nov. lows) could be attributed to speculation that a move to the mainstream via BTC futures listing on the CME and CBOE would open doors to yield-hungry institutional money.
The above chart (prices as per Coinbase) shows:
– Bull flag breakout on Dec. 10 and a bullish follow-through
– Rounding bottom pattern along the rising trend line and a bullish break above $18,000
Clearly, the bulls are in control and could take prices well above the $20,000 mark. Comments on social media show a significant portion of the investor community is expecting the cryptocurrency to test $24,000 in the short-run.
– The technical studies, except the overbought conditions as shown by the relative strength index, favor further upside in bitcoin.
– Still, a risk of “sell the news” trading cannot be ruled out. In such a case, prices could test the upward sloping 4-hour 50-MA and 100-MA of $17,000 and $14,850, respectively.