- Bitcoin hit a new multi-month high, stopped as it approached $ 19,000.
- Technical indicators show that the asset is overbought.
- On-chain metrics imply that Bitcoin is poised for further growth.
Bitcoin bulls got another dose of dopamine as the pioneering digital currency resumed growth after a short phase of consolidation above $ 18,000. BTC / USD hit $ 18,980 in the early hours of Asia on Saturday and fell to $ 18,650 at the time of writing. Bitcoin’s market cap topped $ 345 billion, while its average daily trading volume stood at $ 39 billion.
Market experts tout Bitcoin as a safe haven
As Bitcoin crosses one barrier after another, experts are offering an optimistic forecast for 2021. Thus, Fundstrat Global Advisors’ management partner Tom Lee recently said that the asset will replace gold as a store of value and as a hedge against inflation.
It’s killing her this year – it just crushes all other hedges and asset classes this year, but in 2021 I think Bitcoin could be the year of fireworks … the best is probably yet coming up, he said in the interview with Yahoo Finance.
Earlier, Rick Rieder, CIO of BlackRock, expressed a similar point of view, pointing out that Bitcoin is more functional than gold.
Bearish signals continue to pile up
Meanwhile, the charts look worrisome. So, the TD Sequential indicator was showing sell signals in the form of a green eight candlestick over many time frames, including 3 day and weekly charts. Bearish formation requires confirmation in the form of a red nine candlestick followed by a red two candlestick trading below a previous red candle.
BTC / USD, 3-day and weekly charts
Notably, the price has the potential to retest new highs before the correction begins, but investors should be careful at this point as the market is largely overbought.
Chain metrics indicate the path to the moon is clear
On the other hand, IntoTheBlock’s “In / Out of the Money Around Price” model implies that there are significant barriers up to $ 19,300, as less than 1000 addresses purchased just over 3000 BTC between the current price and $ 19,300.
Bitcoin in / out of money around price
On the other hand, BTC has strong support as more than 400,000 addresses have previously purchased over 350,000 BTC between $ 18,000 and $ 18,600. This supply wall has the potential to absorb selling pressure and propel BTC to new heights.