Bitcoin has sustained a 25% rally over the past couple of weeks. The prominent cryptocurrency presently trades for $13,800, far beyond the $9,800 lows observed in September.
Analysts believe that Bitcoin has the opportunity to stretch to the upside in the months forward. One crypto-asset analyst shared a chart on November 1st. It’s showing that a critical macro technical indicator reveals Bitcoin may soon go parabolic.
Bitcoin May Soon Go Parabolic, Foretells Macro Indicator
While few observed, Bitcoin’s rally off the September lows was a well-known one.
As indicated in the chart below, the rally indicated that BTC endured a pivotal technical level, the 200-week Kijun Sen line of the Ichimoku Cloud.
The trader that gave the chart below noted that Bitcoin rallying off the Kijun Sen makes the current price action look eerily similar to that seen before the exponential rally seen in 2017:
“BTC weekly: Price action looks similar to the last cycle around the 200 period Kijun Sen, just prior to the bull run. This time?”
Chart of BTC’s price action since the start of 2014 with analysis by crypto trader Nunya Bizniz (@Pladizow on Twitter).
Bitcoin’s current rally is also of technical value because it has brought the cryptocurrency above numerous critical technical resistance levels. Two weeks before that, Bitcoin closed its weekly candle above the $12,000 resistance. $12,000 held as resistance on a weekly level during 2019’s rally, along with the relief rally at the start of 2018.
What’s Driving the Rally?
Pushing this Bitcoin burst higher is a formal investment and the inflation narrative playing out right now, according to Matt Hougan of Bitwise. He told the WSJ:
“You had all these rails for institutional capital to come in,” said Matthew Hougan, chief investment officer at BitWise Asset Management. “Then you had the sharp catalyst: the response to the pandemic and concerns about inflation.”
The preeminent cryptocurrency is set to break new all-time highs in 2020, according to leading analysts.
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