While the US elections are yet to be decided, Bitcoin (BTC) is seeing a massive rally as the price of BTC nearly reached $ 16,000 today, the highest level since January 2018.
Other asset classes have also performed well, such as the Nasdaq, which has grown by more than 7% in recent days. In cryptocurrency markets, Ether (ETH) is also starting to rise, with ETH reaching $ 445.
The last weekly hurdle before reaching a new all-time high is approaching
BTC / USDT weekly chart. Source: TradingView
Bitcoin’s weekly chart shows its latest hurdle before reaching a new all-time high as it encounters a resistance zone between $ 15,800 and $ 16,800.
The likelihood of a one-time outbreak is small, given that the Bitcoin price has already increased by more than 50% in recent weeks.
With the rally likely to be crowded as some indicators suggest, it is unlikely to continue. In other words, traders are likely to profit quickly after such a large increase in no time.
Thus, the most likely support area on the weekly chart is in the $ 11600-12000 range. This region was crucial resistance to outbreaks in previous years, as the bitcoin price was consistently rejected in this area. A support / resistance reversal in this area will be relatively appropriate.
Fear and greed reach unseen levels
The Fear and Greed Index is currently at 90, which is classified as extreme greed and traders are warning that a correction shouldn’t come as a surprise.
Index of historical fear and greed of cryptography. Source: Alternative.me
This level was last reached in the summer of 2019. The rally lasted from $ 3,200 to $ 13,800, and ended with a correction of more than 50% in the next few months.
Total market cap when attempting to continue the breakout
Weekly table of the total market value of cryptocurrencies. Source: TradingView
The total cryptocurrency market cap shows a clear breakout from the most recent high of $ 390 billion.
This breakout will likely continue to $ 500 billion, which is the next resistance area on this chart. However, to maintain this growth, the total cryptocurrency market cap has to be above $ 390 billion, as this will likely trigger an upside support / resistance reversal of further growth.
Key levels to look at the Bitcoin chart
1 day BTC / USDT chart. Source: TradingView
Bitcoin’s daily chart shows that Bitcoin’s price is close to its resistance range in the upper time frame to $ 16,000.
The support levels you need to pay attention to are shown on the chart. The initial support range is between $ 14,000 and $ 14,200, which traders should look for in the short term.
On the daily chart, levels between $ 12,800 and $ 13,100 and around $ 11,600 should trigger potential buying on the dip in the event of a correction (for example, after not exceeding the $ 16,000 level).
In general, the sentiment is strongly bullish at the moment, with the price of permanent rallies rising and only one major resistance level at $ 16,000 before a new rally ever begins.