Bitcoin price surpassed $ 19,300 again after falling to $ 16,200 on November 26th. After BTC’s surprising intraday rally, analysts are preparing for an all-time high.
There have been compelling arguments in favor of both bearish and bullish short-term projections for BTC. Most notably, when BTC fell to $ 16,200, it broke out of the recent parabola. This meant that BTC was facing either a major correction or the start of a new uptrend.
Given the strength of BTC’s upward movement, market trends indicate that a new parabolic rally may begin.
The daily price chart of Bitcoin. Source: BTCUSDT on TradingView.com
What happens if Bitcoin breaks $ 19,400?
There are two main scenarios for Bitcoin in the short term. Initially, BTC breaks USD 19,400, moves towards the all-time high and tests the USD 20,000 level.
Second, BTC rejects $ 19,400 again, enough for the short term, and consolidating as it tries to break out again
However, if Bitcoin rises above $ 19,400, a technical analyst and trader named Bitcoin Jack said an all-time high becomes more likely. He said:
“I hate to say it, but BTC is literally on the last line of defense before ATH volume increases. ”
Why BTC Rose So Fast
The main reason for Bitcoin’s current rally appears to be a large short squeeze.
Before the rally, BTC had large short positions on major cryptocurrency exchanges, including Binance Futures.
When a short position is liquidated, it forces the holder to buy the position in the market. Hence, shorts can become a short-term buyer demand for BTC in a short period of time.
A pseudonymous trader known as the “Byzantine General” said:
“[Binance] goes into round 2. Coinbase & Finex have entered the chat. 18900–19000 will be a bloodbath. ”
In the short term, the two main resistance levels for Bitcoin are $ 19,400 and $ 20,000, both of which would likely see a strong reaction from the market.