This past week has been great for Bitcoin, as the coin gained 22% in just 7 days. However, it is currently at a resistance, which Bitcoin will need to overcome for the rally to continue.
Breakout Incoming?
This Bitcoin resistance level was the last high made last year before the FTX-induced crash.
It has previously acted as a resistance 4 times between June and November 2022.
If Bitcoin manages to break above this resistance level, the next target stands at $25,000, which is the highest level reached since June 2022. This is 20% higher than the current level.
Usually, when the price is trending strongly, and it suddenly stops at a resistance, if it is unable to break that resistance quickly, it will start dropping. This is because it starts to lose momentum, and as we know, when a cryptocurrency starts losing its momentum, it usually changes directions.
Support Levels
If Bitcoin suffers a reversal, we could see the price drop to $18,000. This level acted as a support throughout the entire second half of 2022, preventing the price from going lower.
Apart from this support level, the 30 Exponential Moving Average (EMA) is usually a decent mobile support and resistance, which keeps the price from going above/below it.
Looking Ahead: If the price breaks below $18,000 and the 30 EMA, we finally have the $15,500 support level.
However, it is less likely we will end up all the way there. This is because when looking back 4 years ago, we had a similar pattern.
Bitcoin had a small uptrend and then continued its consolidation phase for two more months before starting a bull run. However, it never reached its lows again.
Therefore, if history is to repeat itself, we won’t fall back to $15,500 unless some bad news occurs, like another crypto exchange failing.
_webp.webp&w=1920&q=75)
_webp.webp&w=1920&q=75)