WEEKLY NOTION: Bitcoin Breaking Out from $20,000, What Could Be The Significance of This Event?

The importance of Bitcoin seeing new highs

The momentum in the price action has seen a lot of deliberations amongst various market participants lately. In a panelist session, experts in the cryptocurrency industry expressed their views on the market's current state.

The founder of Quantum economics, Mati Greenspan, felt differently, saying that he is excited about a $20,000 Bitcoin price. Mati stated that it depends on how Bitcoin breaks that $20,000 level. He said that merely touching the price level might not be a good sign because it might slow things down slightly with this sign of exhaustion. 

But an effortless break out through this point will have a more significant impact on Bitcoin as it would be a pointer to the market's level of confidence at this point. This is because this is a significant psychological resistance level for the digital asset, instead of a false or shy breakout.

Blockchain consultant and researcher, Tone Vays agreed with Matis, stating that taking the trade of a para swing high breakout is a lot safer than trying to time the high. He added that unlike previous bull runs, the media hype around the digital asset is more justifiable with events such as halving, Bitcoin birthday, and imminent break out from all-time high.

Tone stressed that without a proper correction of at least 30%, between $10,000 and $20,000, Bitcoin price would remain at risk of losing steam in recurring the cup and handle patterns as it attempts to breakout.

A look at what Onchain data shows

IntoTheBlock's 'In/Out of the Money Around Price' (IOMAP) model reveals that $18,500 plays a key role in Bitcoin trend after the retracement.

Transaction history shows that this is the largest support level holding the pioneer cryptocurrency from a further dip. Here, over 460,000 addresses had previously bought up more than 257,000 BTC.

IntoTheBlock's 'In/Out of the Money Around Price' (IOMAP) model

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