Bitcoin breaking through $12K is huge but don't expect higher prices before 2021

Sunday 25 October 2020, 8:37 PM AEST - 1 month ago

The previous week has been tremendous for Bitcoin (BTC) investors as price broke the crucial barrier of $12,000, culminating in a surge from $11,300 to $13,300, a rally of $2,000 within a week.

A new yearly high was printed, while the dollar has been showing weakness as well. Next to that, multiple listed companies came along with statements regarding allocations of Bitcoin rather than the U.S. Dollar.

All these arguments line up for a continuation of the bull market, but which levels should be watched? Let's take a closer look at the charts.

The $12,000 barrier was crucial for Bitcoin 20d54e05-e09c-44fe-a0f8-aa352f04be20.png

BTC/USD 1-week chart. Source: TradingView

As Bitcoins weekly chart shows, the $11,600-12,000 area was a crucial area to break for any bullish continuation. This resistance area has been persistent since the start of the bear market at the beginning of 2018. For over thirty months, the price of Bitcoin couldnt break through this resistance zone, until the previous week.

The beginning of a bull market is often flagged by beautiful support/resistance tests for continuation, which is also seen at the $10,000 level. After this support/resistance test, the upward run continued.

74515d51-40eb-4cdc-b758-8ad067b66c5b.png

BTC/USD 3-day chart. Source: TradingView

The $10,000 level got a retest and held, which marked a new support zone. Since then, Bitcoins price has continued to run upward, which led to the breakout above the $12,000 barrier.

The $11,600 resistance must flip to support 6dd595be-8024-45ca-a976-fa113eb9d82f.png

BTC/USD 3-day chart. Source: TradingView

As the $11,600-12,000 broke upward, some interesting levels can now be determined for traders to watch in the upcoming we ...

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