Bitcoin went through a massive rally yesterday, November 18, 2020, as the cryptocurrency touched the $18,500 mark. The price of the cryptocurrency did drop down by $1000 within only a span of a minute or two to $17,400. This signifies that Bitcoin did manage to hold key support levels in the drop level, signifying the cryptocurrency is up for a further rally.
Bitcoin’s Price Could Rally up to $20,000
Bitcoin faced quite a strong on-chain resistance, despite the higher trend. This comes from the selling pressures from investors as seen in the order books of leading cryptocurrency exchanges. Crypto analysts @CL207 highlights this:
I don't know why so many people assume there is a "they" in moves like this.
its just well-informed short time frame scalpers testing the market and successfully finding a pocket of liquidity from top longers who folds their positions in quick succession. https://t.co/b0N3pwGWDj
— CL (@CL207) November 18, 2020
Analysts continue to hold on to the narrative that the cryptocurrency will continue being bullish despite the recent plunge.
To maintain this statement, a crypto trader shared a 4-hour trading chart highlighting strong wicks into the recent plunge of $17,000:
sigh this is so retarded bullish
strong daily close here and we're prob taking ATH today or tomorrow on btc
same pattern as 16k, first long ass bottom wick from initial profit-takers
second long ass bottom wick from subsequent profit takers on the bounce
next time it runs imo pic.twitter.com/CE5QHPBKex
— CryptoGainz (@CryptoGainz1) November 18, 2020
The crypto coin did face volatility this year owing to the situation of the COVID-19 pandemic and the overall global financial instability.
However, the price of Bitcoin showed a positive performance above the $14,000 price mark during the start of November 2020 followed by a continual rally.
Bitcoin Quadrupled in Value in 2020
The price of Bitcoin almost quadrupled in value since its yearly lows of March 2020. The cryptocurrency is now trading at its best since January 2018, almost to a three-year-high.
The world’s largest cryptocurrency by market capitalization has shown quite a positive performance this year almost similar to the wild rallies of late 2017 that neared the $20,000 mark.
The recent performance of Bitcoin signifies that the cryptocurrency has broken out of the downtrend that was driving its price for the past two and a half years.
One can only contemplate that the price of Bitcoin has the potential to reach its all-time high of $19,800 from December 2017. A continuous rally above the $16,000 mark signifies that Bitcoin’s price can move even further to $20,000.