Bitcoin Breaks Resistance and Heads Higher
The Details: Up until 10 days ago, Bitcoin was stuck below the $21,500 resistance. However, on the 20th of January, it broke above its resistance and is heading higher toward the next resistance at $25,000. Let’s see what happens next!
What’s Next?
There are multiple resistance levels on Bitcoin’s way to the all-time high.
The first level comes at $25,000 and is where the short rally in August 2022 stopped. However, considering that Bitcoin has had a 50% increase in its price without any retracement, this resistance may hold temporarily.
The price will likely retrace to the previous resistance of $21,500 if this occurs.
Once the $25,000 resistance is broken, the $34,000 is up next. This was an essential support level between May 2021 and May 2022.
If the price retraces, there are two support levels at $18,000 and $15,500. While reaching $18,000 is possible, it is unlikely the price will go back to $15,500.
200 SMA: Apart from the two support levels, there is the 200 Simple Moving Average (SMA).
The 200 SMA acted as a resistance in the previous bear run, keeping the price from going above it. It is now likely to act as a support like from mid-2020 until 2021.
