Bitcoin saw an explosion of growth in terms of its price over the holiday weekend most notably the day after Christmas where spot markets saw a nearly $2,000 increase. This weekend rally caused a massive gap in the CME’s futures chart of nearly $3,000 to appear upon opening today.

With a higher number of the investment community eyeing Bitcoin through a bullish lens than ever before, do the technical back up their sentiment?

After breaching previous record highs by $4,000 Bitcoin seems to be losing momentum. A retracement of some sort is likely, the most important question is “will the $20,000 level serve as support?”

Although we had broken the all-time high in Bitcoin futures on both the last day of November and the first day of December both of these higher highs barely beat out the previous highs from 2017 and were only achieved on an intra-day basis. Today however there was a clear and decisive break-out taking Bitcoin to all new territory.

With many traders flocking to the world's larger than life cryptocurrency many investors of small scale have turned to the Greyscale Bitcoin Trust, to fulfill their demands. Greyscale otherwise known as GBTC its ticker symbol has become a popular tool for both small-scale and institutional level entry into the growing Bitcoin market.

This week was a phenomenal one for the world’s number one digital currency by market cap. Speaking of market cap Bitcoin’s total market cap grew to its all-time high reaching $369 billion on December 1^st, and still sits well above $350 billion to this day.

It would seem that traders in the spot and futures markets wouldn’t let this rally die out before reaching a new record high in Bitcoin. During the Thanksgiving holiday, Bitcoin sold off on the spot exchanges while futures traders could do nothing until the following day when the markets re-opened.

As we made note of earlier this month PayPal’s announcement that Bitcoin will be supported on its platform morphed the 2020 bull run into a parabolic rise towards all-time highs.

Bitcoin has breached a level in which some analysts including myself would act as resistance and a likely point to enter a correction. This price level at approximately $16,300 in the CME’s futures contract was taken out in trading Monday and that opened the door for more parabolic movement to the upside gaining another $800 in today’s trading.

Although some analysts believe that there is a distinct difference between what is fueling this rally compared to previous rallies seen in Bitcoin, I do not see this distinction as different enough to negate BTC from a pullback after such a parabolic rise that we have witnessed recently in Bitcoin and believe it is still susceptible to a correction in the near term.