Is There a Limit to Bitcoin's Meteoric Rally? $15,000

Bitcoin's stellar run continues with costs jumping one major psychological hurdle once another.

At 11:00 Greenwich Time these days, the world's largest cryptocurrency by value reached a brand new time period high of $15,058, in step with CoinDesk's Bitcoin index (BPI). within the last twenty-four hours, Bitcoin (BTC) has appreciated by over $2,000. As per CoinMarketCap, gains are near nineteen p.c over a similar amount.

Prices have since born back slightly and stand at $14,562 at press time

The primary theory regarding the astonishing rally being advised by investors on social media is that bitcoin is rating within the entry of massive institutional cash via the introduction of the primary BTC futures merchandise.

Both CBOE international Markets and CME cluster ar set to launch the new futures contracts on Dec. 10 and Dec. 17, severally. With the notable shift in the business, bitcoin could stay well bid a minimum of till Sunday's listing of BTC futures on the CBOE.

That said, the technical chart studies show BTC may face immediate resistance at around $16,194.

• Chart 1 (Fibonacci)

The higher than chart shows:
The 127.2 p.c Fibonacci extension of the rally from the Gregorian calendar month low stands at $16,194 levels. succeeding massive resistance is lined up at $18,261 (161.8 p.c Fibonacci extension) and $18,399.50 (261.8 p.cFibonacci extension of the rally from the September low).
On the drawback, support is seen at $12,476.51 (161.8 p.c Fibonacci extension of the rally from the September low).

5- and 10-day moving averages (MAs) are sloping upwards, suggesting any corrective pullback is probably going to be passing.
The RSI and random indicate overbought conditions.
Bitcoin may simply extend the rally to $16,194 levels within the next few hours. But, whereas the capitalist community is usually happy to ascertain the cryptocurrency heading for the moon, as indicated by comments on social media, there's growing discomfort with the pace of the ascent.

Still, today, the instruction for a notable technical correction is absent. History shows that bitcoin sometimes suffers massive sell-offs following confirmation of a pessimistic RSI divergence. Yet, the charts show no such development up to now.

• Chart 2 (RSI, stochastic)

In the past, bitcoin has suffered pullbacks once the RSI and random turned lower from the overbought territory (see circles on chart). Currently, each indicator shows overbought conditions, however, are still rising.

• View

Bitcoin may extend gains to $16,194 and presumably even additional.
A pullback to $11,000 can't be dominated out, however dips below the upward sloping 10-day MA of $11,500 arprobably to be passing.
As of now, a major correction is unlikely and will be seen solely on confirmation of a pessimistic price-RSI divergence and/or if RSI and random move lower from the overbought territory.

Source