Bitcoin price recently cracked new yearly highs and was trading at the highest level since January 2018. Many investors are hoping for all-time highs to be tested by the end of the year. Based on current technical, which resistance level does Bitcoin need to accept in order to confirm another bull run that could put us near all-time highs?
Bitcoin Price
At the time of this report, Bitcoin is currently trading at $15,334. As of recent, BTC has put in new yearly highs and has traded at the highest levels since January 2018. The largest digital asset by market cap has rallied +35.8% over the last month. On a yearly basis, Bitcoin has surged +74%. According to a Q3 market report by TokenInsight, traditional financial institutions were expressing more interest in Bitcoin and Ethereum compared to other altcoins. This has caused correlations between Bitcoin and altcoins to drop significantly, pushing more capital into king Bitcoin.
Bitcoin Technical Analysis
In recent Bitcoin analysis, it was outlined that BTC needed to break $16,000 resistance in order to put bulls back into control. We also mentioned that BTC was due to enter correction mode based on decreasing demand. At the time of the report, Bitcoins RSI was also very “overbought,” which was a red flag. Bitcoin ended up rejecting the $16,000 push and has since retraced to $15,300 levels. Based on this price action, we have adjusted the key resistance level to watch in the short term.
Based on current technicals, Bitcoin price should remain bearish until $15,800 is accepted. If this bearish sentiment continues, do not be surprised if Bitcoin retests $12,500 support. The recent parabolic move made it difficult to assess strong support and resistance levels since we have not seen these price levels since 2018. If we look at the chart above, we will quickly see that RSI is still elevated, which still signals overbought territories.
The Bull Scenario
As we all know by now, Bitcoin price does not always care about support and resistance levels. This is why we identify key resistance levels to avoid missing out on another parabolic move. Based on the current setup, we have adjusted key resistance to $15,800. If BTC can accept this level, you could see another influx of buyers. BTC testing all-time highs is no longer a joke. Many investors in the space believe we will accomplish this milestone by year-end. This is the reason that technicals could become irrelevant if another round of bulls come in. At that point, we think FOMO could take us to that all-time high test.
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