The price of Bitcoin can now see a side action for a few months after breaking the crucial resistance of several years at $12,000.
The past week has been tremendous for Bitcoin Profit review Investors (BTC), as the price broke through the crucial barrier of $12,000, culminating in an increase from $11,300 to $13,300, a rally of $2,000 in one week.
A new annual peak was established, while the dollar has also shown weakness. In addition, several publicly traded companies submitted statements on Bitcoin allocations instead of the US dollar.
All of these arguments line up for a continuation of the bull market, but what levels should be watched? Let’s take a closer look at the charts.
The $12,000 barrier was crucial for Bitcoin
As the Bitcoin weekly chart shows, the area of USD 11,600-12,000 was a crucial area to break for any upward movement. This resistance zone has been persistent since the beginning of the bearish market in early 2018. For more than thirty months, the Bitcoin price was unable to break out of this resistance zone until the previous week.
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The beginning of a bullish market is often marked by beautiful support/resistance tests for continuation, which are also observed at the USD 10,000 level. After this support/resistance test, the bullish run continued.
The USD 10,000 level was tested again and held, which marked a new support zone. Since then, the Bitcoin price has continued to rise, leading to a break above the USD 12,000 barrier.
The USD 11,600 resistance should be changed to support
As the USD 11,600-12,000 shot up, some interesting levels can now be determined for traders to watch over the next few weeks. Often, buying after such a large rally is not the best strategy, as the lower levels are likely to be tested again.
As mentioned, the confirmation of a support/resistance change at the USD 10,000 level guaranteed a bullish momentum. A similar case is likely to occur here. It is likely that the crucial USD 11,600-12,000 barrier will experience a support level test before the market can continue to rally.
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Resistance is at USD 13,600-14,000 and USD 16,500-17,000. However, it is unlikely that the latter will be affected in the coming months, as movements within the range seem more likely.
Therefore, traders should pay attention to the USD 13,600-14,000 and USD 11,600-12,000 area, as both could become crucial pivots in the coming weeks.
The total capitalization of the crypto market enters the key resistance zone
The total market capitalization graph for all cryptosystems shows a clear zone of resistance between USD 395-415 billion. It’s unlikely that a breakout will occur all at once, but that depends largely on the movement of Bitcoin.
Therefore, a new test of the $330-340 billion support would be very likely and would establish a healthy construction for the start of a new bull market.
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If the total market capitalization exceeds USD 395-415 billion, the next zone of resistance is between USD 510-525 billion.
One possible scenario for the price of Bitcoin
As discussed earlier in this article, there is a very likely case that the price of Bitcoin will have a correction towards the area of USD 11,600-12,000 for some technical level tests.
Therefore, a limited range technical structure can be determined. The resistance zone is between USD 13,500-14,000 and the support zone is between USD 11,600-12,000.
This limited range construction is very healthy for starting a new cycle, as it constantly builds up at a higher level. Getting out of this lateral range after a few months can see the next big move, which will probably take the price of Bitcoin to USD 17,000 and possibly even to a new all-time high.
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