The world’s top digital asset is about to claim $20,000 but there is a strong resistance which is creating a hurdle. Market analysts believe Bitcoin will have to break resistance standing at $19,500.
Strong Resistance Level
On all over the cryptocurrency exchanges, the market observers noticed that $19,500 has created a disturbance and has pushed the price value slightly in the downward direction. For example, bulls pumped the value to $19,484 on the cryptocurrency exchange Binance but bear pressurized price tag to retreat it to $19,300.
The price downfall happened because the traders set the sell orders between $19,450 and $19,550, which caused a slight sharp decrease.
A prominent trader with the Twitter name “Byzantine General” shared the data of various top cryptocurrencies exchanges which declare $19,500 the last resistance wall against claiming of all-time high value.
Another famous Bitcoin researcher Vijay Boyapati called the region between $19,500 and $19,500 a “baby wall” before the price of Bitcoin may witness a new all-time high. “Past this baby wall most prior exchange all time highs are going to get taken out very quickly,” said Boyapati.
There is another scenario that if value becomes fail in breaking the resistance, a temporary downfall will occur which is also important to normalize the markets as most of the traders are in shock amid raid price gain. But one thing is confirmed that it is the last hurdle in a path towards $20,000.
There is a need for normal futures funding rate as the funding rate has claimed the figure of 0.07% on derivative platform Binance Futures and many others derivative crypto platforms. The average funding rate is 0.01% for the primary cryptocurrency which shows people are injecting millions of dollars into crypto space.
According to financial experts, there is a lot of difference between bull run that happened in 2017 and the one who is happening now. Director of Digital Asset Strategy at VanEck, Gabor Gurbacs, explained the difference and said,” while the 2017 bitcoin rally was driven by higher volumes, likely due to retail demand, the 2020 price rally so far has been driven by lower volume.” What’s more, the current price rally that is happening right now because of “institutional allocation.” Moreover, the primary cryptocurrency is now defining by the market financial specialists as a good store of value. The rise of institutional investors in the crypto space is a witness of the development.