Last week was a big deal for Bitcoin (BTC) investors as the price broke the critical $ 12,000 barrier, pushing it up from $ 11,300 to $ 13,300, a $ 2,000 high for the week.

New Year’s highs printed, while the dollar also showed weakness. Additionally, many listed companies have issued ads to place Bitcoins instead of the US dollar.

All these arguments are for the beef market to continue developing, but what levels should you look at? Let’s take a closer look at the charts.

As the Bitcoin weekly chart shows, the $ 11,600 to $ 12,000 range was an important area to overcome for any continued bullishness. This resistance area has continued since the bear market began in early 2018. For more than thirty months, Bitcoin price was unable to breach this resistance area until last week.

The start of the beef market is often marked by beautiful support / resistance tests of the continuation, which also appear at the $ 10,000 level. After this test of support / resistance, riots continued.

The $ 10,000 level was replicated and held, representing a new support area. Since then, the bitcoin price has continued to rally, breaking the $ 12,000 barrier.

With $ 11,600-12,000 shrinking, traders can now set some interesting levels to look at in the coming weeks. This is often not the best buying strategy after such a huge rally, as a fresh test is likely to come in at lows.

As mentioned, the $ 10,000 support / resistance swing confirmation confirmed the upward momentum. Here is likely a similar case. The critical $ 11600-12000 barrier is likely to test the support before the market can rally further.

The resistors cost $ 13,600-14,000 and $ 16,500-17,000. However, the latter is unlikely to arrive in the coming months as range moves are likely.

Thus, traders should be aware of the ranges of $ 13,600 to $ 14,000 and $ 11,600 to $ 12,000, as both could become important links in the coming weeks.

The total market cap of all cryptocurrency charts shows a clear resistance area between $ 395-415 billion. The breach is unlikely to happen right away, but it is highly dependent on the bitcoin movement.

Hence, it is very likely that a new support test of $ 330-340 billion will create a healthy structure to start a new beef market.

If the total market value breaks down $ 395-415 billion, the next resistance area will be between $ 510-525 billion.

As discussed earlier in this article, it is very likely that the bitcoin price adjusts to the $ 11600-12000 range for some technical level tests.

In this way, the technical structure of the domain can be determined. The resistance area ranges between $ 13,500 and $ 14,000, and the support area is between $ 11,600 and $ 12,000.

This scale related structure is very useful for starting a new cycle because it is constantly building up at a higher level. Exiting this sidewalk in a few months could mean the next big step, which will likely push the bitcoin price up to $ 17,000 and possibly even a new full-time job.

Source: CoinTelegraph

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