Bitcoin (BTC) price has undoubtedly had an impressive year, having dropped to $ 3,700 in mid-March and hit $ 14,000 in the following months. Now the price of BTC has hit its highest point since January 2018 when the price hit $ 14,100.
So, The likelihood of a new bull cycle increases significantly as the price of Bitcoin continues to make new highs and higher lows. In addition, robustness is also seen when the DXY index, which it normally correlates inversely with, bounces back amid the uncertainties about the coronavirus.
Bitcoin has not yet crossed the $ 13,700 to $ 14,250 range
BTC / USD weekly chart. Source: TradingView
The weekly chart shows some critical levels that need to be watched for the upward momentum to continue. One of them is the current resistance zone around the $ 14,000 threshold. If you cross this zone of resistance you will get greater strength towards the next threshold of approximately USD 16,500 to USD 17,000.
These two levels are the final hurdles before a possible new all-time high is reached. while most altcoins are still experiencing heavy losses compared to its 2017 highs.
There are two critical levels to look down on. The first and foremost switch is the $ 11,400-11,800 range. This has been the key resistance zone for two years, which means it could be retested before the price continues to rise.
However, if this area is lost, The next support zone is between $ 10,100 and $ 10,400. These two areas are important to staying in when the market is bullish.
The highest monthly deal is possible for Bitcoin
Monthly chart of the BTC / USD pair. Source: TradingView
As we can see on the monthly chart, the highest monthly close is possible for Bitcoin. An incredible achievement 12 years after their white paper was published.
However, it also shows the importance of this zone of resistance, since It is the last major hurdle before the all-time high can be reached.
If the zone of $ 13,700 to $ 14,200 is crossed, continuation of new all-time highs is almost guaranteed as there aren’t many levels in between.
However, the start of a new bull cycle is usually accompanied by periods of accumulation that re-test and confirm previous resistance areas as support. Such a period of accumulation would mean that the price of Bitcoin could drop to $ 11,600 to find enough support before a steep move higher.
The current market behavior is comparable to the 2016 cycle
2016 weekly chart for the BTC / USD pair. Source: TradingView
The 2016 graph shows these areas of accumulation, which indicated a healthy trend. All previous resistance levels were retested for confirmation, after which an area was set to accumulate Bitcoin.
After building it with limited range, the compression started building up which ultimately led to a big breakout.
Another positive sign is the quick buy on market corrections. These are shown with long highlights when buyers plunge in price when price falls. A similar move can occur if the market corrects in the coming weeks.
Possible scenario for the price of Bitcoin
Weekly chart of the possible scenario for the BTC / USD pair. Source: TradingView
The current $ 11,400-11,800 area is a very important area of resistance. If Bitcoin’s price falls and breaks out of this resistance zone, a correction becomes a possible scenario for the pair.
So, The possible scenario for Bitcoin is a limited-range stock between $ 11,400 and $ 14,200. Such a side construction would be similar to the construction phase of 2016.
Aether and other altcoins can appear on the scene when Bitcoin has completed its correction and that begins Construction of a side area. It will likely be a few more months before the altcoins can move higher.
The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.