This means that the chances of Bitcoin breaking the previous all-time high, have doubled since October 22nd. At the latter date, the probability of BTC hitting the same $20k level stood at 7%. In late June, Bitcoin had a 5% chance of hitting $20k by the end of 2020.
Bitcoin is Currently in Overbought Territory
The continual increment in Bitcoin’s odds of reaching this level can only mean that FOMO has kicked in despite numerous technical indicators pointing that BTC is currently overpriced. A quick glance at the daily Bitcoin chart reveals that the daily MFI is currently at 71 and the daily RSI at 90. These are extremely high values that usually hint of a pending correction.
Bitcoin Faces Minimal Resistance to $20k
However, Bitcoin has a lot of bullish momentum given that the King of Crypto has pumped hard since November 3rd. On the latter date, Bitcoin was hovering around the $13,200 price level. At the time of writing, Bitcoin has just printed a 2020 high of $15,950 – Binance rate. This translates to a 20.8% increment in value in under 4 days and amidst US election uncertainty.
In terms of resistances moving forward, very few remain as Bitcoin attempts to break $20k. Notable resistances include those found at the levels around $15,720, $16,500, $17,125, $17,490 and $18,050.
However, Bitcoin traders and investors are advised that the faster BTC rises, the higher the chances of rapid selloffs as open interest increases on the various derivatives platforms. This means there is also the probability of substantial ‘choppiness’ in the Bitcoin markets in the near future.