The $13,000 level is considered the most critical resistance area for Bitcoin in the short to medium term. Yet, many technical analysts and traders are not persuaded it is the peak for the dominant cryptocurrency.
The performance of Bitcoin over the coming weeks could heavily affect how it behaves until the end of the year. For the time being, traders expect the upside momentum of BTC to last for several important reasons.
Merger Under a Major Resistance Area is Not a Bearish Pattern
In technical analysis, when the price of an asset settles slightly below a vital resistance level but does not see a significant pullback, it is acknowledged as a positive trend.
Above $13,000, there are not many resistance levels until the all-time high to $20,000. The initial run-up of BTC to its record-high in 2017 was so fast that it did not leave exact technical levels. As such, when it crashed, it fell quickly below $10,000 within weeks.
Based on the short-term trend of Bitcoin, the pseudonymous trader known as “Salsa Tekila” said $13k does not seem like a top, just yet. He twitted:
When BTC hits a clear peak, historically, it saw a fast pullback within a short period. However, in the past week, BTC has consolidated between $12,900 and $13,100, not seeing a significant sell-off.
“If it gives you the time to short ‘the top,’” the trader said it probably is not a fair trade.
Another pseudonymous technical analyst is known as “Benjamin Bluntz” said the current weekly technical structure of BTC remains “phenomenal.”
For the first time since January 2018, the weekly candle of Bitcoin closed above $13,000. It has shown a clean breakout on the daily and weekly time frames, with the monthly chart on track to see an escape.
Until BTC sees a significant pullback below crucial support levels, the technical analyst said the market is not for shorts. He twitted:
Institutions Might be Perceiving a Similar Trend
On October 24, Skew stated that the CME Bitcoin futures COT report shows institutions are holding net record high longs.
“Latest CME #bitcoin futures COT report – leveraged funds net record short and institutional net record-long! With market rallying, basis trades are increasingly attractive for hedge funds, currently yielding 10%+,” Skew researchers said.