Bitcoin Panic Buying Drives Price To New High


Bitcoin Panic Buying, It’s Here

Bitcoin prices smashed through the $6,000 resistance level over the last week and have surged to new highs. The move is taking the token ballistic and driven in large part by panic buying. Panic buying, the fear prices will keep moving higher and you will miss out. It’s a real thing and folks, it’s going to drive BTC all the way to $20,000. It may take some time, it will likely not all happen at once, but with each new wave the market will re-inflate to it’s previous levels.

The daily charts look quite strong. The BTC price is moving up steadily with bullish indicators and room to run higher. While it is never a good thing to assume prices will just keep running up we have some assurance this price will move up to the next resistance zone. That zone is near $6,500 and may provide a pull back or consolidation that can be used as a new entry point for short-term trading. The only caveat is that MACD momentum is diverging from the new highs and stochastic is overbought, additional indication a correction may be brewing.

The weekly charts look really nice, really nice indeed. The BTC price bottomed over the past few months and is now I a full reversal. The reversal is still in its early phases but the signs are strong. The candle pattern over the past month to six weeks is a nice continuation confirmation at a support level, price is breaking resistance at a key pivot point, and MACD momentum is slowing building. Not only is momentum bullish and growing, stochastic is high in the range but still has some room to run higher. Based on this chart it looks like $7,500 is a more likely resistance target than $6,500.

Longer-term, the $7,500 level could be incredibly important. At that level lingering resistance from the 2018 sell-off will either be there or not. Once that hurdle is cleared the next logical targets are $10,000, $12,500, and $15,000. Once we start talking about $2,500 dollar swings the panic buying will intensify, traders will see dollar signs dancing in their heads, and a push to $20,000 will soon follow. When $20,000 is broken I think $30,000 and $40,000 will be close behind.

 

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