banner
Bitcoin: start of a new bullrun in 2020?
Bitcoin: start of a new bullrun in 2020?
Bitcoin

Bitcoin: start of a new bullrun in 2020?

By Andrew Bit - 20 Jan 2020

Chevron down

+30% in 15 days for bitcoin in this 2020 which has just begun: is it a new bullrun?

We’re so accustomed to bitcoin’s resounding performance that we almost take it for granted: “just an ordinary day” for BTC.

bitcoin bullriun 2020

The elements in support of the bullrun that we are now witnessing are many, however, as it is bitcoin, everything falls within the scope of speculation.  

The situation is certainly one of geopolitical instability, which opened the year 2020; in addition, we are approaching the May halving and monetary policies are out of control and unprecedented, whereas states are perpetuating in a sort of spiral with no way out.

In short, for those familiar with bitcoin, this asset does not need help to deliver unique performances, even if, as in this case, a helping hand is not bad. We are now at a critical crossroads. The 9000 dollars represents an important psychological threshold.  

The 10k is very close and returning to a double-digit evaluation would have multiple positive implications both in terms of media and technical analysis.  

But the 9k is also a resistance that traders and investors are watching with particular attention. 

Breaking the $9000 and recovering the 200D MA – the 200 Day Moving Average – with a solid closing above would be a bullish signal that would potentially open the door to a new bullrun, perhaps similar or greater than the one recorded in 2017. 

bitcoin bullrun 2020

In support of a bullish thesis, there is to say that many of the main altcoins are reacting well to the dumps that progressively occurred on bitcoin after the impact with the resistance. Many of them seem to absorb fiat (euros, dollars and all other legal tender currencies) exiting bitcoin, giving important pumps not only in dollars and euros but also in relation to BTC itself, outperforming it accordingly. 

The conditions to continue a bullrun that is perhaps only at the beginning are all there. 

However, as an investor and especially as a trader it is impossible not to take into account that, without the important confirmation mentioned above, BTC remains in limbo.  

The risk of being rejected by the 200MA and the downward trendline is there and the bears will do everything to keep the price below. In this case, a break of the upper macro supports would bring us back in the price range between $7000 and $6000 with a consequent increase in risk (risk, not certainty) of breaking the 6850 and 6400 lows. 

We really are at an important crossroads for the future of the BTC. It is not just a question of price, bull or bear, but of definitive confirmation of the maturity of this asset in view of the important event in May. 

 

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.