Bitcoin's price has been showing significant strength as Bitcoin's price rallied by more than 60% in a matter of six weeks, surging from $10,000 to $16,500 and leaving many investors behind.
Can the markets expect a correction to happen, or is further strength likely for the markets?
If Bitcoin's price wants to continue its upward momentum, the previous resistance zone has to flip for support.
Holding the $15,500-15,700 area means further upward continuation is likely, while a breakdown confirms the bearish divergence that should push the price down.
The weekly timeframe shows a precise resistance level at $12,000, which was broken six weeks ago.
Is a continuation likely to expect after such a massive surge? One argument is that there are still many untested levels beneath the current spot price where liquidity can be found.
The sentiment has flipped from bearish to euphoric bullish as more institutions jump on the Bitcoin bandwagon so a pullback shouldn't come as a surprise.
As the chart shows, a correction towards $12,000 could still occur, which used to be a critical level.
To keep climbing higher, an apparent breakthrough in this resistance zone has to occur in which the $16,500 area immediately flips for support.
As previously discussed, the $15,600-15,750 area has to hold for more upside, with the next significant area of resistance at around $17,500.
Bitcoin price must break this level to extend 6-week winning streak
Published on Nov 16, 2020
by Cointele | Published on Coinage
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