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.

Today Bitcoin hit its target we were calling last week on the nose. While it is true that we recommended pulling profits last week in an abundance of caution after a variant of a candlestick pattern formed “three river evening star” on a daily chart after coming within $150 of our target for this leg of the rally.