Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
Bitcoin has broken through the $18,000 USD mark after consistently gaining new healthy support levels. This marks the first time it has rallied above $18,000 USD in three years and spots a record high for 2020. The cryptocurrency was sitting just below, around $17,850 USD after surging through the $17,100 USD to $17,300 USD barriers of resistance. Experts have noted that this range would offer a strong resistance level, but Bitcoin managed to cut clean straight through to a bullish $17,800 USD.
Bitcoin trajectory: Bullish or pullback?
While the token’s massive spike in trading seems bullish in isolation, there might be a pullback correction on the cards. Using data and the current chart trajectory, the price of Bitcoin seems to be on a positive incline. If there is a minor pullback, it doesn’t spell a bearish response and could lead to a more consistent increase.
Filbfilb, the co-founder of Decentrader co-founder, tweeted that should the support hold, the price of Bitcoin could be on its way to surge further. He offered:
“The current PA could still very easily result in a blow-off towards the Golden Ratio Multiplier, currently at 19k.”
While some analysts were expecting a slight pullback before $17,700 USD, the bulls seem to be pushing the price of Bitcoin higher. Looking at the price trajectory so far, Bitcoin has maintained healthy growth and with positive sentiment in the market coupled with the current trend of the token, the next level could be towards new records.
Matt Blom, who leads global sales trading at EQUOS offered:
“The market has extended to the upside, breaking above the trend channel and appears to be entering a blow-out phase. With a strong bull market, the tendency is to call a top, for me, the question is at what point does the rally become unstainable. If we drive up to $19,050 this week, I would expect a pullback to the $17,000 level. There’s a lot of new money in Bitcoin, they’ve never experienced a Bitcoin retracement! In the past, Bitcoin has retraced sharp up moves, but this time, there is one missing ingredient! The lack of auto-liquidation of leveraged longs.”