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Bitcoin price gets closer to the last big hurdle before $20,000

Bitcoin price gets closer to the last big hurdle before $20,000

Whereas the US’ election remains to be undecided, Bitcoin (BTC) is experiencing a significant rally, as BTC worth almost reached $16,000 in the present day, the very best degree since January 2018.

Different asset lessons have additionally been doing properly, similar to Nasdaq, which noticed positive aspects of greater than 7% in latest days. Within the cryptocurrency markets, Ether (ETH) has began to climb as properly, with ETH hitting $445.

The final weekly hurdle earlier than a brand new all-time excessive is shut

BTC/USDT 1-week chart. Supply: TradingView

The weekly chart of Bitcoin is exhibiting the ultimate hurdle earlier than the brand new all-time excessive will be reached, because it’s dealing with the resistance zone between $15,800 and 16,800.

The likelihood of a breakthrough in a single go will not be excessive, provided that the value of Bitcoin has already surged by greater than 50% in latest weeks.

For the reason that rally might now be overextended, as a number of indicators counsel, it’s unlikely to anticipate additional continuation. In different phrases, merchants will seemingly be taking some fast earnings after such an enormous rally in a brief time period.

Due to this fact, the most probably assist zone based mostly on the weekly chart is discovered on the $11,600–12,000 space. This zone has been an important resistance to a breakthrough within the earlier years, as Bitcoin’s worth has been continually rejected on this space. A assist/resistance flip on this space could be comparatively wholesome.

Concern and Greed reaching ranges not seen earlier than

The Concern and Greed Index is presently exhibiting a worth of 90, which is classed as excessive greed and warning merchants {that a} correction mustn’t come as a shock.

Crypto Concern and Greed historic index. Supply: Various.me

The final time this sentiment degree was reached was throughout the summer season of 2019. This rally ran from $3,200 to $13,800 and led to a correction of greater than 50% within the following months.

Complete market cap trying a breakout continuation

Complete market capitalization cryptocurrency 1-week chart. Supply: TradingView

The full cryptocurrency market capitalization is exhibiting a transparent breakout above the latest excessive of $390 billion.

This breakout seems to be more likely to proceed rallying towards $500 billion — the following resistance zone discovered on this chart. Nevertheless, to maintain such a rally, the overall market capitalization of cryptocurrencies has to carry above $390 billion, as that might probably lead to a bullish assist/resistance flip for extra upside.