Here are the Simple Factors That Could Pull Bitcoin Towards Its 2020 Highs
- Bitcoin is showing tempered signs of strength at the present moment as its price pushes up towards $11,800
- The cryptocurrency has been seeing slight weakness in recent days, making this latest upswing a welcome development for bulls
- BTC has yet to break its prolonged consolidation phase between the lower-$11,000 region and $12,000
- Some factors suggest a break of this range is imminent in the near-term
- One analyst is pointing to stock market strength and weakness in the US Dollar as a couple of these factors to consider
Bitcoin and the aggregated crypto market have pushed slightly higher today, with most digital assets still trading mostly flat as BTC approaches its key near-term resistance at $12,000.
How it reacts to this resistance should offer significant insights into its near-term trend, as a rejection here would be a significant sign of weakness.
Analysts are noting that there are multiple factors currently counting in the benchmark cryptocurrency’s favor.
Some of these factors include a strong weekly close, strength in the stock market and gold, as well as weakness in the US Dollar.
The confluence of these factors may help lead Bitcoin higher in the days and weeks ahead.
Bitcoin Posts Strong Weekly Close as Technical Outlook Grows Strong
At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,785. This is around where it has been trading throughout the past few weeks.
It does, however, mark an upswing from its recent lows of $11,400 that were set just a couple of days ago.
Analysts believe that the crypto may soon be guided higher by technical strength resulting from a strong weekly close that it was able to post. As one analyst noted:
“Happy with this weekly close – prior resistance that held for multiple years. Now holding as support so far. If the daily can stay above $10,500 and weekly about $11,500 – should be a continuation to upside if so.”
Image Courtesy of Josh Rager. Chart via TradingView.
These Fundamental Factors Could Boost BTC as Well
Some non-technical factors may also be working in Bitcoin’s favor. One analyst pointed to rising gold prices, stock market momentum, and a faltering dollar as a few things that may boost BTC.
“SPX showing major strength along with gold and silver, dollar showing weakness. I think btc will at least head for 12.1k area. Just closed my short, staying flat ~ looking to re-enter higher if I like what I see / buy dips if we reclaim 12.2k.”
Whether these fundamental factors will be enough to send Bitcoin flying past $12,000 remains to be seen.
Featured image from Unsplash. Charts and pricing data from TradingView.
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