After consolidating for many days, Bitcoin underwent one final push ahead of the weekly candle close just minutes ago. The price of the leading cryptocurrency currently trades for $19,400, far above the weekly lows. This one final push allowed BTC to push to its highest weekly close ever, according to a crypto trader known as Mayne:
Highest weekly close ever on #Bitcoin!
— Mayne of Tether (@Tradermayne) December 7, 2020
There are other traders that recently noted that Bitcoin has set its highest weekly close ever.
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Many see this as a validation that this isn’t a “double top” near $20,000 on a macro basis. Analysts are confident that BTC will continue its ascent higher now that it has set a new high.
Bitcoin Holders Should Watch Out Below?
While Bitcoin has made this technical accomplishment, there are some concerned that a drop is imminent.
Raoul Pal recently shared that as per the Tom Demark Sequential, a key time-based technical indicator, he fears that a correction is likely:
Bitcoin is potentially facing some serious technical headways… the daily DeMark is showing a cluster on 2 13's and a 9 and tomorrow might put in ANOTHER 13! pic.twitter.com/TNPpLfR2nH
— Raoul Pal (@RaoulGMI) December 4, 2020
Pal is a prominent Wall Street veteran that spent his career running hedge funds and working as the head of hedge fund sales at Goldman Sachs. He retired from the hedge fund business and now researches markets and runs Real Vision for a living.
He recently put 98% of his liquid net worth into Bitcoin and Ethereum:
“Ok, last bomb – I have a sell order in tomorrow to sell all my gold and to scale in to buy BTC and ETH (80/20). I dont own anything else (except some bond calls and some $’s). 98% of my liquid net worth. See, you can’t categorize me except #irresponsiblylong.”
Many are unsure whether or not his technical warning is significant.
Falling Dollar to Help BTC
A falling U.S. dollar will help the price of Bitcoin, though.
The U.S. dollar index, the DXY, is currently breaking below key support levels. This has resulted in a relative surge in the value of foreign currencies.
Many expect further losses in the value of the U.S. dollar to value the Bitcoin bull case.