Bitcoin breaking through $12K is huge but don't expect higher prices before 2021

The previous week has been tremendous for Bitcoin investors as price broke the crucial barrier of $12,000, culminating in a surge from $11,300 to $13,300, a rally of $2,000 within a week.

All these arguments line up for a continuation of the bull market, but which levels should be watched? Let's take a closer look at the charts.

For over thirty months, the price of Bitcoin couldn't break through this resistance zone, until the previous week.

The beginning of a bull market is often flagged by beautiful support/resistance tests for continuation, which is also seen at the $10,000 level.

The crucial barrier of $11,600-12,000 is likely to see a support level test before the market can continue rallying.

It's unlikely to have a breakout in one go, but that's heavily dependent on the movement of Bitcoin.

If the total market capitalization breaks through $395-415 billion, the next resistance zone is found between $510-525 billion.

As discussed previously in this article, there's a very likely case that Bitcoin's price will have a correction toward the $11,600-12,000 area for some technical level tests.

Such a range-bound construction is very healthy for starting a new cycle as it's constantly accumulating on a higher level.

Breaking out of this sideways range after a few months may see the next big move, which will likely bring the price of Bitcoin towards $17,000 and possibly even a new all-time high.