• Bitcoin is officially in full parabolic rally mode, with the cryptocurrency’s recent break above $20,000 giving way for it to see a massive rise
  • Its price rallied as high as $23,700 overnight before facing a steep rejection that sent it spiraling down to lows of $22,400
  • The buying pressure here was intense, and has since allowed it to rally higher
  • It is important to note that although the crypto did face a rejection, it is clear that the mounting hype around it has led to inflows of dip buyers
  • One trader is now noting that BTC will likely form a local top in the near-term following this immense parabolic upswing
  • He believes that this will result in it entering a true price discovery mode in a few weeks when 2021 rolls around

Bitcoin and the entire crypto market have been caught in the throes of an immense bout of sideways trading throughout the past few days and weeks.

The selling pressure seen within the upper-$23,000 region has proven to be quite intense, sparking two retraces over several hours.

One trader believes that this could ultimately mark a local top for the cryptocurrency, potentially allowing it to see some consolidation in the short-term before it posts an explosive rally higher in 2021.

Bitcoin Explodes Higher as Bulls Take Full Control

At the time of writing, Bitcoin is trading up just under 8% at its current price of $23,000. This is around the price at which it has been trading throughout the past few hours.

It has faced rejections at both $23,700 and $23,300. If it continues struggling to break above either of these levels, the crypto could decline or consolidate in the near-term.

Trader Claims BTC Likely to Post Local Top; See Price Discovery in 2021

One trader explained in a recent tweet that Bitcoin is likely to post a local top in the near-term, which may cause it to see some consolidation before it sees true price discovery in 2021.

“Slept through this last leg but the way BTC is respecting fibs makes me very pumped for the idea of trading this price discovery in 2021. For now tho – local top should be in, time to focus on alts,” he said while pointing to the below chart.

Image Courtesy of Cryptorangutang. Source: BTCUSD on TradingView.

The coming few days should shed some serious light on the long-term significance of the latest leg higher and whether Bitcoin will extend this parabola in 2020 or 2021.

Featured image from Unsplash.
Charts from TradingView.

Source link