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Bitcoin price is nearing the final major hurdle before reaching $ 20,000

November 6, 2020

While America’s elections are still undecided, Bitcoin (BTC) is experiencing a major rallywhen the price hit nearly $ 16,000 on November 6, the highest level since January 2018.

Other asset classes have also performed well. as Nasdaqwhich have grown by more than 7% in the past few days. In the cryptocurrency markets Ether (ETH) has also started rising, with ETH reaching $ 445.

The final weekly hurdle before a new all-time high is approaching

BTC / USDT weekly chart. Source: TradingView

The Bitcoin weekly chart shows the last hurdle before a new all-time high can be reachedas it faces the resistance zone between $ 15,800-16,800.

Bitcoin price is nearing the final major hurdle before reaching $ 20,000
Bitcoin price is nearing the final major hurdle before reaching $ 20,000

The likelihood of a one-time breakthrough It is not big since the price of Bitcoin has already risen by more than 50% in the last few weeks.

Given that the rally may now be congested, as various indicators suggest, It is unlikely that another sequel is expected. In other words, Traders are likely to make quick profits in a short time after such a large rally.

Hence, based on the weekly chart, the most likely support zone is in the $ 11,600 to $ 12,000 range. This zone has been a critical resistance to breakthrough in the past few years as the price of Bitcoin has been consistently rejected in this area. A change in support / resistance in this area would be relatively healthy.

The rate of fear and greed is reaching levels never seen before

The Fear and Greed Index currently shows a value of 90that is classified as extreme greed and warns traders that a correction should come as no surprise.

Historical index of “fear and greed”. Source: Alternative.me

The last time that mood was reached was in the summer of 2019. That rally rose from $ 3,200 to $ 13,800 and ended in a correction of more than 50% in the months that followed.

All market cap is trying to continue the breakout

Weekly chart of total cryptocurrency market capitalization. Source: TradingView

The total market capitalization for cryptocurrencies shows a significant break above the recent high of $ 390 billion.

This outbreak is likely to climb further towards $ 500 billionas this is the closest resistance zone that can be found in this table. To keep such a rally going The total market capitalization of cryptocurrencies needs to stay above $ 390 billionThis could lead to a bullish reversal of support / resistance for further benefit.

Important levels that can be seen on the Bitcoin chart

Daily chart of the BTC / USDT pair. Source: TradingView

The daily chart for Bitcoin shows that the price of BTC is approaching a higher resistance area at $ 16,000.

The following support levels are listed in the table. The first area of ​​support is between $ 14,000 and $ 14,200 that traders should keep an eye on for the short term.

On the daily chart, Levels between $ 12,800-13,100 and around $ 11,600 should be a trigger for potential buy-drop entries in the event of a correction (for example after no more than 16,000 USD).

Overall, sentiment is highly bullish at this point as the price hits a multi-year high and only a large resistance level remains at $ 16,000 before a new all-time high comes into play.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.