Santa Could Come Early If BTC Smashes $13,865 Resistance
Bitcoin (BTC) has breached its main resistance $13,865, and if the Bitcoin price closes above it Santa could come early to Bitcoiners.
After falling from 2020 highs of $13,863 on Wednesday October 28, Bitcoin (BTC) has regained bullish momentum with BTC/USD pair rising for the third straight day.
And everything is looking bullish for Bitcoin with a Bitcoin to USD price of $13,892 at time of writing.
Short Term Bitcoin Technical Analysis
On the daily chart, the Relative Strength Index (RSI) is in the overbought area above 70 for the 10th consecutive day, but with Bitcoin breaking out of its $13,060-$13,600 range that it’s been confined to for the last three days, we could see a move higher.
The $13,865 Bitcoin price is the highs of the 2019 bullrun and is the main resistance. If we can close above that level, we could see the price drive above the Bitcoin to USD $14,000 psychological level.
Bitcoin Price Will Run To New All Time High If $14k Is Smashed
If 2019 high resistance is breached, BTC has a good chance of taking $14,000. If it does, we could see significant moves higher, and maybe even see a run to new all time high Bitcoin price, according to some.
Former Hedge Fund manager, Raoul Pal tweeted on Tuesday that if $14,000 is broken, he expects to see a new all time high by early 2021.
‘There are literally only two resistances left on the Bitcoin chart,’ Pal tweeted. ‘$14,000 and then the old all-time high at $20,000. I fully expect new all-time highs by early next year at the latest.’
And popular analyst @lightcrypto pointed out that OKEx futures order book asks were being pulled, which increased the likelihood of a move above $14,000.
If Bitcoin Smashes $13,865 Resistance We Could See a ‘Santa Rally’
$13,865 is the final resistance, and if we breach it BTC will be aiming for prices not seen since January 15, 2018. And if we can breach it, we will see a ‘Santa Rally’ according to analyst, TradingShot.
Historically, Bitcoin has only spent 39 days above $13,865, and since we last topped it, BTC has spent 1019 days below it.
According to TradingShot, however, it’s in Bitcoin’s historical price movement symmetry that points towards a move up and his Santa Rally.
‘On short and long-term time-frames that the patterns Bitcoin follows can be symmetrical,’ explains TradingShot. ‘For example in 2018, from the time it broke back below 13865 until its new (at the time) $5,750 Low, was 164 days. Roughly the same time (169 days) it took from that low to make the latest market Bottom in December 2018.’
‘When BTC reached the critical $13,865 level again (June 26, 2019), it made the new (COVID) Low 261 days later. It should be no surprise to us if in 261 days roughly from the Low (i.e. a day before December 01), the 13865 level has broken. And if it does it could look what an end-of-the-year ‘Santa Rally’ is for the stock market.’
Will Santa Come Early For Bitcoiners?
Bitcoin has been acting like a beast since the March lows. It’s all textbook, and as most analysts predicted a steady climb up for the first 6 months after the halving.
With almost 5 months now since the Bitcoin halving, the Bitcoin cycle is playing out as expected.
The Bitcoin price set a yearly high just $2 under the 2019 highs, and if it does smash it at close today, there isn’t much resistance up to $20,000.
Whether symmetrical trends play out or not, all analysis is pointing to higher Bitcoin prices. Santa could come early for Bitcoiners, and he might just spend the whole of 2021 with us, too.
