Bitcoin Price Analysis: BTC/USD above 9,500, is this the beginning of the journey to $20,000?
|- As halving effect kicks in, Bitcoin investors look forward to a rally eyeing $20,000.
- Bitcoin step above $9,500 confirms a return of the bulls after recovery from last week’s lows at $8,100.
Bitcoin price is bullish several days after the halving process. While many people expected a massive price action after the halving, Bitcoin has taken a slow approach; first stepping into the $9,000’s range and then breaking the resistance at $9,500. At the time of writing, Bitcoin is trading at $9,540, following a 2.37% growth on the day. Buyers have kept their eyes on the medium-term target at $10,000 since the opening at $9,318.
Investors are waiting with baited breaths for Bitcoin to rally to new all-time highs. Based on the trend of the first two halvings, Bitcoin recorded massive gains. If history repeats itself, experts such as Tom Lee believe that $20,000 is a preservative prediction. Lee of Fundstrat once said Bitcoin had the potential of rallying to $40,000 by the end of 2020 after the halving. PlanB, a pseudonymous crypto analyst using the Stock To Flow (S2F) model predicts a surge to $80,000 by the end of 2021.
Bitcoin technical update
Bitcoin price is trading at o$9,540 amid increased volatility during the European session. The Asian session was lethargic with the $9,400 level being an uphill task to break. However, the break above $9,500 confirms the bulls’ presence in the market.
According to the RSI, Bitcoin is comfortable in the hands of the buyers. The indicator has renewed the movement towards the overbought. If the motion remains intact, more buying entries could eventually push BTC/USD towards $10,000.
As far as support is concerned, $9,300 is the short term support. If push comes to shove and a reversal ensues under $9,000, Bitcoin would seek support at $8,800, $8,400, the 200-day SMA at $8,000 and the 50-day SMA at $7,694.
BTC/USD daily chart
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