Continued rise in the price of Bitcoin (BTC) to around 20,000 USD

Do the markets need to clean up before a possible continuation of the upward rally that began in October 2020?

There are 4 arguments in favor of a continued rise in the price of Bitcoin (BTC) towards USD 20,000. Today, November 7, 2020, seems to argue the contrary.

Beyond 16,000 USD

Bitcoin approached $16,000 USD yesterday, November 6, 2020. The question now is whether the BTC will be able to continue its ascent or whether a correction is inevitable.

4 on-chain indicators show that Bitcoin is capable of going much higher:

The number of Bitcoins held by the exchanges has fallen: according to Delphi Digital analyst Paul Burlage, the amount of Bitcoins on the exchanges reached its ATH at 2.96 million BTC in February 2020, compared to 2.41 million BTC today. Few Bitcoiners would therefore be preparing to sell their Bitcoins at this time.

The number of BTCs that have not moved has exploded: the rate of immobile Bitcoins reached an ATH of 63.5% on September 9, 2020. The price of Bitcoin has risen considerably since then, the rate is currently around 62%. Many Bitcoiners therefore continue to keep their BTCs although they could sell at a high price.

The rise in recent weeks has not yet reached its peak: there is no evidence that the BTC has reached a peak. The number of traders has gradually decreased, as hodlers are taking control of the market. The USD 15,000 could very well turn into a solid support in the medium and long term.

Bitcoin's unrealized profit (URP) is in favor of a continuation of the bullish rally: this indicator is calculated by subtracting the realized value of Bitcoin - the average value of BTC prices when they last moved multiplied by the total number of BTCs - from the market value - the price of Bitcoin multiplied by the total quantity of BTCs. This NRP was 0.64 when BTC peaked at USD 14,000 in 2019. Its current value is around 0.53. Bitcoin can still continue its rally before it suffers a sharp correction.

Towards $14,000?

Bitcoin fell below $15,000 today. It is trading at $14,991 at the time of writing.

The BTC is losing over $500 per day. It will be decided in the next few hours whether or not the USD 15,000 will support a continuation of the bullish rally.

Ascension or correction: the verdict in 24 hours. The Bitcoiners have to be patient like the supporters of Joe Biden who had to take their pain in patience.