Bitcoin saw quite the bout of volatility on Wednesday. Early in the morning, the cryptocurrency tanked, falling as low as $6,450 in a strong move lower, before rebounding to the upside.<\/p>\n
By the end of the day on Wednesday, the price of BTC had rallied as high as $7,300<\/a>, surging by over 10% from its local bottom in the $6,400s on the back of seeming short covers and long-term investors buying the crypto dip.<\/p>\n Although it may be too early to tell whether or not this is a fully-fledged macro reversal, one prominent trader, who called the drop in November to the $6,000s, suggests that Bitcoin has a good likelihood of reaching $20,000.<\/p>\n Here’s more on that.<\/p>\n Bitcoin’s latest bounce higher has infused bulls with a fresh dose of hope, culminating in positive analyses that imply BTC’s reversal rally is just starting.<\/p>\n One such analysis was posted by Velvet, a popular cryptocurrency trader. They noted that “this week[‘s close]” for BTC is “very important,” noting that the key thing Bitcoin will need to do by Sunday’s close is “holding the” trend line, seen in red in the chart below.<\/p>\n For reference, the trend line in question, which always ended up in bear markets when BTC crossed below it, currently sits in the high-$6,000s, which BTC is currently above.<\/p>\n If Bitcoin rides that level, Velvet remarked<\/a> that Bitcoin “could see $20,000 by March,” referencing the fact that prior to previous halvings, BTC always surged, rallying higher on the expectation that a negative supply shock would hit the market.<\/p>\n #BITCOIN<\/a> $BTC<\/a> #BTCUSD<\/a><\/p>\n Real talk: This week is very important!<\/p>\n The only thing that matters now is holding the trend (red line)! (Current UP)<\/p>\n Every time we lost it, we ended up in a BEAR market! Only this time.. the market will crash!<\/p>\n \ud83d\udc49 If we HOLD it we could see 20K by march pic.twitter.com\/qrmAnu6weO<\/a><\/p>\n — MAXi. (@888Velvet) December 18, 2019<\/a><\/p><\/blockquote>\nRelated Reading: Bitcoin Jumps 10%, PlusToken Moves $100m of Ethereum; Can it End the Rally?<\/a><\/h6>\n
Could Bitcoin Top $20,000 By March?<\/h2>\n
Related Reading: Ethereum Is Now Officially Net Negative in 2019, Down 91% From ATH<\/a><\/h6>\n
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