Without a doubt, the price of Bitcoin (BTC) experienced an impressive year after falling to $ 3,700 in March, but then surged to $ 14,000 in the coming months. BTC is now at its highest since January 2018, when the price hit $ 14,100.
Thus, the likelihood of a new bull cycle rises sharply as the price of bitcoin continues to hit new highs and lows. What’s more, the strength is showing even when the inversely correlated U.S. dollar index rebounds amid coronavirus fears.
The weekly chart shows some important levels that need to be monitored in order to continue the bullish momentum. One of them is the current zone of resistance near the $ 14,000 threshold. A breakout of this resistance zone initiates additional strengthening to the next threshold, around $ 16,500-17,000.
These two levels are the latest obstacle to a possible new all-time high, while most altcoins still suffer significant losses from their 2017 peaks.
There are two levels that are important to pay attention to. The first and primary key is the range from $ 11,400 to $ 11,800. This has been his critical zone of resistance for two years, which means he could see a new test before he gets even higher.
However, if you lose this area, the next support zone will be between $ 10100-10400. These two areas are important to continue if the market is in a bullish zone.
As the monthly chart shows, the highest possible close in a month for Bitcoin is an amazing feat 12 years after the White Paper was released.
However, it also demonstrates the importance of this area of resistance as it is the last major hurdle before the record can be called into question.
If $ 13,700-14,200 falls out, further progress towards new full-time points is almost guaranteed, since there are not so many intermediate levels.
However, the beginning of a new bullish cycle is usually accompanied by periods of accumulation during which areas of previous resistance are retested and confirmed as support. This accumulation period would mean that the bitcoin price could adjust to $ 11,600 to find sufficient support ahead of the big rally.
The 2016 chart shows the areas of accumulation that have established a healthy trend. Each previous resistance level was retested for confirmation, after which the range of the Bitcoin pool was set.
After this range was created, pressure began to build up, eventually leading to a massive rupture.
Another important signal is fast buying during market corrections. These long weeks appear when buyers go to buy quickly when prices fall. A similar move could happen if the market corrects in the coming weeks.
The current $ 11,400 to $ 11,800 range is the main area of resistance. If the bitcoin price falls and breaks through this resistance area, a correction is a likely scenario.
Hence, the potential range for the Bitcoin scenario is between $ 11,400 and $ 14,200. This side build will be similar to the backlog period in 2016.
Ether and other digital currencies can show a segment when Bitcoin completes its correction and enters a sideways range. It will most likely take several more months before altcoins begin to rise.