Bitcoin gained attention as a result of a surge above the $ 19,000 price level of $ 19,469 yesterday.
However, investors should be cautious as it is possible that this valuable asset will face a pullback at $ 20,000 based on 3 factors:
Bull Trap Scenario!
Bull trap refers to buyers or holders trapped in asset depreciation.
If Bitcoin fails to break through the $ 19,200 to $ 19,300 price zone, there is potential for a pullback to occur. A crypto investor said the $ 16,000 level would remain the macro support level.
$ 20,000 As Key Resistance
So far there is no evidence that BTC will soar above $ 20,000.
Most analysts and industry executives expect Bitcoin to reach around $ 25,000 to $ 100,000 for the current cycle. It is not uncommon for buyer interest to rise sharply, preventing the asset price from exceeding $ 20,000.
High Fund Rates
For the whole major crypto currency exchange, the fund rate for Bitcoin continuous exchange contracts has increased from 0.05% to 0.1%. This means that buyers or holders pay short-sellers with most of their position.
Positive fund rates attract short-sellers to act in the $ 20,000 price zone.
Anyway, until now the over-the-counter (OTC) market is still active. This means that most big Bitcoin owners including institutions will buy the asset.
Despite the difficulties, many analysts are optimistic about the BTC price potentially surpassing the $ 20,000 level.
