Bitcoin [BTC/USD] Price Analysis: Price booms as 2020 continues to shower its fortunes
Bitcoin [BTC/USD] Price Analysis: Bitcoin‘s performance in 2020 has been the talk of the cryptocurrency town and many naysayers have now begun to backtrack on their comments about the digital asset’s fall.
The second week of 2020 has been quite fruitful for Bitcoin as its price hit its highest point since November of 2019. This event has been quite clamorous for the space as multiple proponents came forward to praise the world’s largest cryptocurrency.
At press time, Bitcoin’s price was $8293.33 with a total market cap of $150.51 billion. The market cap too has risen to one of its biggest markers since last October, another win for the currency. It is easy to say that the price rise has been random but a technical analysis will give us a deeper look.
1 hour:The hourly chart for Bitcoin’s price showed multiple green candles shooting for the sky. The immediate price support for Bitcoin was lifted to $7762 after a continuous price hike for 6 days.
The Parabolic SAR was strongly below the price candles. This indicated that Bitcoin’s price would continue to stay in the bullish territory.
The Chaikin Money Flow indicator was another friend to Bitcoin’s price. The CMF was way above the zero line which meant that the capital coming into the Bitcoin market was much more than the capital leaving the market.
The Awesome Oscillator was showing burgeoning green signal after the recent bullish run. The bump in the AO meant that the Bitcoin market pressure was at a long term high.
The short term indicators all showed bullish signs, which may indicate a strong bull run for the next couple of days including a mix of price flatlines.
Bitcoin’s daily price chart had begun to reflect the currency’s performance in the short term. The green candles had begun to take over with the last 6 markers staying green throughout. The immediate support on the daily chart was at $6626.3.
The Awesome Oscillator signalled green for the first time in 2020. Together with the CMF, we can speculate that institutional investors were increasing their ramp up towards the Bitcoin industry,
The Parabolic SAR for Bitcoin’s long term price also remained bullish, a positive sign for traders. The markers remained below the price candles and assured holders that the atmosphere was bullish.
Bitcoin’s price prediction has always been tricky with analysis, with multiple factors affecting its movement. The above-mentioned Bitcoin price charts and indicators have all in tandem stated that Bitcoin’s strong start to the year will bring its dividends soon.