The price of Bitcoin has surpassed $19,300 once again, after dropping to as low as $16,200 on November 26. Following BTC’s surprising intraday rally, analysts say it is preparing for an all-time high.

There were convincing arguments for both bearish and bullish short-term projections for BTC. Most notably, when BTC dropped down to $16,200, it broke out of the recent parabola. This meant that BTC was at risk of either a large correction or beginning a new uptrend.

So far, based on the strength of BTC’s upward movement, market trends show that it could begin a new parabolic rally.

There are two main scenarios for Bitcoin in the near term. First, BTC breaks $19,400, head towards the all-time high, and test the $20,000 level.

Second, BTC rejects $19,400 again, it ranges in the near term and consolidates, as it attempts to break out once again

But, if Bitcoin surges past $19,400, a technical analyst and trader known as “Bitcoin Jack” said an all-time high becomes more likely. He said:

“I hate to say it but BTC is literally at its last lines of defense before making ATH Volume is picking up, bullish breakouts on the LTF Failure to see a rejection at 19K and there is pretty much nothing that stand in its way Good game bulls.”

The primary reason behind the current rally of Bitcoin seems to be a large-scale short squeeze.

Prior to the rally, across major cryptocurrency exchanges including Binance Futures, BTC saw large short positions get liquidated.

When a short position gets liquidated, it forces the holder to market buy the position. As such, shorts can turn into short-term buyer demand for BTC in a short period.

A pseudonymous trader known as “Byzantine General” said:

“[Binance] is going for round 2. Coinbase & Finex have entered the chat. 18900 – 19000 will be a bloodbath.”

In the near term, the two key resistance levels for Bitcoin are at $19,400 and $20,000, both of which would likely see a strong reaction from the market.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

211 +