Bitcoin Weekly Outlook: How likely is a rise above $20,000?
In the last 7-10 days, a clash between bears and bulls has pushed Bitcoin into a tight price range.
Traders are seeing short-term technical barriers to long-term bullish fundamentals. Sentiment is causing Bitcoin to fluctuate within a triangle-like Profit Revolution technical pattern, with the upper trend line showing resistance and the lower trend line showing support.
This is all that the crypto-currency’s flagship has to offer: short-term long/short opportunities with no breakout attempts.
It seems safer for traders to accept short-term calls rather than extend their bullish targets beyond Bitcoin’s recent all-time high of $19,915. Their earlier attempts in this regard led to stop-loss triggers – which in turn led to billions of dollars worth of liquidations in the Bitcoin futures market.
Sentiment now continues into the new week. Bitcoin has formed a sequence of lower daily highs, after topping at $19,915.
In the meantime, the bulls are holding $18,000 as support. It is only a matter of time before you know which level will break first. The answer to this could be provided by the fundamentals.
Bitcoin’s macroeconomic outlook
With the start of development and distribution of COVID-19 vaccines, the US economy could gradually recover from the effects of the pandemic. In the meantime, the US Congress could take more concrete decisions on its bipartisan efforts to launch the second $900 billion stimulus package.
The US Federal Reserve will also meet next week to discuss whether to extend its policy of unlimited bond purchases from short-term treasuries to long-term ones. In both cases, the US Federal Reserve has ensured that it will continue to buy up government and corporate debt and maintain its ultra-low interest rates.v