Bitcoin

3 reasons traders expect the rally to continue after Bitcoin price climbed to $ 24,000

Bitcoin (BTC) price topped $ 24,000 on December 19, hitting a new all-time high. On Coinbase, the price of Bitcoin peaked at $ 24,200 and has since consolidated in the $ 23,500 to $ 23,800 range.

Three factors made the price of Bitcoin rise in a short period of time and hit a record high. The factors are a massive short contract, sell orders of $ 23,600 and market reaction to proposed Treasury Department self-custody portfolio rule.

According to Coinmarketcap, Bitcoin’s market capitalization is currently $ 442,241,910,354.

Another large short contraction occurs at $ 23,600

3 reasons traders expect the rally to continue after Bitcoin price climbed to $ 24,000
3 reasons traders expect the rally to continue after Bitcoin price climbed to $ 24,000

According to Bybt.com Today $ 138 million in short term contracts were processed.

The massive liquidation of short contracts occurred when Bitcoin topped $ 23,600s. The $ 23,600 area has been a major level of resistance due to stacked sell orders on major exchanges.

Bitcoin accounting data on exchanges. Source: Bybt.com

At Bitfinex, the $ 23,600 and $ 23,800 resistance levels had large sell orders before the rally took place.. As the price of Bitcoin began to rise, short positions and sellers pushed their way into the $ 23,600-23,800 resistance area.

Mostly, A brief contraction occurs when a seller is forced to buy their market position because the price of Bitcoin is rising. As a result, buyer demand can skyrocket in a short period of time, often resulting in a large upward breakout.

The market is not affected by the US FinCEN rule

On December 19, US Treasury Secretary Steven Mnuchin unveiled a proposed rule for self-custody portfolios.

The rule states that exchanges must keep a record of withdrawals and deposits over $ 3,000 made from unguarded wallets. When the transactions more than $ 10,000, in order to Exchanges would have to report directly to the Financial Crimes Enforcement Network (FinCEN).

However, as the analysts explained, the rule itself isn’t as bad as industry executives originally thought. Cointelegraph reported that Unless the proposal becomes law, the price of bitcoin and the crypto market in general are likely to ignore the news.

Jake Chervinsky, General Counsel for Compound Finance, said::

“Let’s look on the good side for a minute. This doesn’t require KYC for every transaction with an unprotected wallet. It’s not an outright ban on self-custody. It doesn’t prohibit using a network without permission. Really … REALLY. .. It could have been a lot worse. “

Despite the positive catalysts, in the short term, Traders believe Bitcoin may consolidate or recede due to the excessive widening of the rally.

Scott Melker, a cryptocurrency trader, pointed to Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart to suggest this Bearish overbought deviations likely. Said What:

“I closed my $ BTC leveraged long position. Overbought bearish deviations are likely, not guaranteed. But I would like to go a long way if I had the opportunity. Specifically, a replay of old all-time highs in support.”

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