Bitcoin has been trading relatively stable in the past week and a half and bulls have defended a critical support level in the form of the 26-EMA. Bitcoin price has climbed above the 12-EMA as well, turning it into a support level.
The only resistance that bulls face is the all-time high at $19,888. Trading volume has started declining again, which indicates that BTC is ready for another breakout or breakdown. It seems that odds favor the bulls in the short and long-terms.
Most technical indicators remain heavily bullish on virtually all time-frames. Similarly, on-chain metrics also suggest that Bitcoin price is ready to crack $20,000.
Bitcoin Price Analysis: Prominent Analysts Think BTC Will Crack $20,000 by The End of 2020
Several popular analysts have recently stated that Bitcoin is poised for a massive move in the short-term, potentially by the end of 2020.
On the 4-hour chart, it seems that BTC has formed a potential Cup and Handle pattern with its neckline at around $19,436, which is extremely close to the current price of $19,400. A clear breakout above $19,600 would be confirmation and likely to push Bitcoin price above $20,000.
While the future monetary policies of central banks are clouded with uncertainty, Bitcoin's monetary policies are transparent and predictable. @natemaddrey analyzes the case for bitcoin as a hedge against inflation in this week's State of the Network:https://t.co/Q4BnAgX3Am pic.twitter.com/VQbtgBH9qy
— CoinMetrics.io (@coinmetrics) December 15, 2020
In the most recent Coin Metrics State of the Network, Nate Maddrey states that Bitcoin is used more than ever as a hedge against inflation by institutions and people.
For most of its existence institutions have stayed away from investing in bitcoin, typically citing it as a risky, speculative asset. Over the course of 2020, however, many institutions have started to endorse bitcoin. One of the most commonly cited reasons for this change of tune is the growing narrative that bitcoin could serve as a good hedge against inflation.
Other analysts, like Alex Kruger, believes that Bitcoin remaining below $20,000 is good in the long-term.
The more time $BTC spends below 20K and the lower the funding and futures basis as price approaches 20K, the stronger the upwards break once it comes.
It will come.
— Alex Krüger (@krugermacro) December 15, 2020
This idea is accurate as it means Bitcoin investors have more time to accumulate below $20,000. Especially if the price of Bitcoin remains close to the $20,000 mark, a breakout will be far easier as bulls don’t need to push the digital asset by a lot.