Bitcoin must overcome hurdle at $19,500 for new all-time high.

18. Dezember 2020 0 Comments

The Bitcoin (BTC) price has to overcome resistance at the $19,500 zone to reach a new record.

This is a conclusion that analysts draw based on technical and fundamental analysis, reports Cointelegraph.

Bitcoin (BTC) price and resistance

Today, the price came down to $19,500 for quite a bit of resistance. The highest point of this day at the time of writing is $19,490.

Logically there was a row of sales orders between $19,450 and $19,550. The anonymous trader „Byzantine General“ shares this overview of the order books of stock exchanges around $19,500.

According to market researcher and much sought-after speaker Vijay Boyapati, this zone really is the last hurdle the cryptomint has to take to roll through the $19,666. He sees it as the last sell wall before a new all-time high is reached.

In the next few hours it should become clear whether the price will again test the zone around $19,500. The longer it takes, the more likely it is that the price will fall.

Trader J.C. Parets also warns traders (rather than long term investors) to get in or out on time.

High funding rate

Indeed, one of the risks is that the funding rate on the futures and options market is, on average, high.

The funding rate is the fee paid by long positions to short positions in order to stabilise market prices.

Every 8 hours there is a new average. As soon as this metric is extremely high or low, it signals that the market is overheating. At Binance the average fee is 0.07%, while a fee of 0.01% is usual.

At the same time, the number of short positions in the market increases, as a result of which the funding rate goes back to more normal values.

Bitcoin’s shorting in a bull market is not without risk, all the more so because the demand for the crypto currency among companies has risen sharply this year.

At a fundamental level, however, the picture is crystal clear. By November 2025, 95% of all Bitcoin Victory will have been mined. Of the current 18.5 million BTCs, only a small percentage is on the market. The demand for this scarce supply is only increasing.