Crypto analyst Nicholas Merten says Bitcoin could test its all-time high of about $20,000 in a matter of days.
The popular YouTube analyst points to the fact that, historically, BTC has only been at its current price levels for a very short period of time.
“We’re approaching the price range where we saw very fast parabolic movement. And if you think this has been parabolic [so far], if we do test up towards $12,000 it’s going to get even faster. And we’re possibly going to see a repeat of the all-time high. And I think it’s going to happen in a very short period of time…
We’ve had a faster exit out of the accumulation period and if we take a look at history, there was an eight-day period after testing the $10K level where we went to set our all-time high.”
Although there appears to be less retail interest in the crypto space than there was during Bitcoin’s last big rally, Merten says FOMO (fear of missing out) from institutions and crypto traders is now fueling a shortage in supply.
“People are not getting rid of their Bitcoin. They’re not moving it. They’re hodling it. Whether it’s for investments, whether it’s lost Bitcoin, whether you’re just a retail investor and you’re hodling for the long term. There is a limiting supply here as demand is coming back into the market. And I think that’s being reflected through the almost parabolic price action we’ve seen. What’s to say that after we’ve gotten this faster set of higher lows in this case, who’s to say that in the next few days we can’t keep moving, that we can’t repeat history at $20,000 and test that level.”
Merten cautions that anything can happen in the volatile crypto market, and says $12,000 is now the key number to watch.
“I don’t want to get too eager on this. We still haven’t broken past $12,000. That is the level we need to see it close above. If we get a close above $12,000 on solid volume, I would play my cards in the idea that we’re going to see $20,000. I don’t think we’re going to see it for pretty long. I think we’re going to have a pretty sharp correction like we had last time and we’re going to close down on a lot of those gains because that’s a very significant resistance level for Bitcoin.”
Meanwhile, technical analysts at large are surveying the landscape for Bitcoin and the altcoin market.
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