3 Reasons to Move Bitcoin to $ 20,000 in a Short Time

3 Reasons to Move Bitcoin to $ 20,000 in a Short Time

The Bitcoin price rose by 7.60 percent to $ 5.796.93 to create a new 2019 peak on Friday. The upward trend has increased dramatically from year to year by Bitcoin to 54.08 percent. At the same time, it brought the total recovery of the asset to an astonishing level of 82 percent, bringing the crypto currency to a new record.

In this article, we discuss the three reasons that the Bitcoin price will reach to the highest level of all-time highs in the late 017 period.

Why 1: Moving Average Increased since 2015

Yesterday, Factor Trading author Peter Brandt suggested that the price of Bitcoin could rise to $ 19,800 in the future. He supported the forecast using the weekly moving average indicator and said the trend is below the Bitcoin spot price.

Such a move was last seen in November 2015 and the price of Bitcoin, which was 340 dollars at that time, rose to $ 19,800 in 2017. Robert Sluymer, the technical strategist of Wall Street strategy firm Fundstrat, believes that Bitcoin has entered the bull market.

The financial expert said that the asset could initially retreat to its latest 200-week moving average for the latest $ 6,000. However, he said that he could now enter the accumulation stage supported by Thomas Lee, the founder of Fundstrat, and the price could go up to $ 20,000.

Historically, a strong upward trend was seen when the 50-week moving average was higher than the average price. Bitcoin fell below the 50-week moving average during its downward trend in May 2018, and then the price dropped to $ 3,100. Now the probability of bullish market for Bitcoin above the 50-week moving average is extremely high.

Recently, Bitcoin's weekly relative strength index has exceeded 53.65, the highest since October 2015.

In the chart above, the level indicated by a red horizontal line was used as a criterion to measure the trend of a bull or bear. In the Bitcoin market, the purchase sentiment rose to over 53.65, and when the RSI fell below this mark, it triggered sales pressure as in January 2018.

The Golden Cross occurs when the short-term moving average of an asset exceeds the long-term moving average.

In October 2015, the Bitcoin price witnessed one of these formations trading around $ 300. Subsequently, the entity moved to one of the longest periods of ascension, bringing it close to $ 20,000. The Golden Cross once again occurred last month, focusing on the potential for the price of Bitcoin to rise.

All three of these reasons support the possibility that the Bitcoin price will re-test $ 20,000 in less time than many bulls have expected. For now, Bitcoin is trading between $ 5,500 and $ 6,000.