Bitcoin Spike Above $16K Rejected At First Weekly Bear Market Resistance From 2018
In the early overnight hours of the morning, Bitcoin price made yet another attempt at pushing beyond the local high of $15,950 and into $16K territory.
And while the attempt was successful at making it through, a powerful $500 rejection send the crypto asset tumbling lower. Here’s a look at the very last level of resistance separating Bitcoin from retesting $20,000.
Bitcoin Rejected Above $16,150, Here’s Why That Level Is So Critical For Crypto Continuation
The first-ever cryptocurrency has had an incredibly bullish 2020, and if the momentum continues, 2021 will be record-setting.
A new all-time high record could be within months at this point, now that Bitcoin price is trading back above $15,000. After consolidating above the crucial level, Bitcoin made another push higher this morning to above $16,000.
Bitcoin price stopped at weekly resistance from New Year's Day 2018 | Source: BTCUSD on TradingView.com
There, it ran headfirst into resistance set on the very first day of 2018. On January 1, 2018, a weekly close at $16,150 started the bear market. The cryptocurrency never against set a higher high, until just weeks ago.
With a higher low and higher high out of the way, bulls have had the confidence to finally return to that level. Zooming into daily timeframes, the accuracy at which the rally stopped is uncanny.
The rally could see a correction, but not the end | Source: BTCUSD on TradingView.com
Zoomed in further all the way down to the one-minute candle, is even more shocking. Price action spiked above the key level not just once, but twice on one-minute timeframes, then collapsed by over $500.
Even on the one-minute chart the resistance level is clear | Source: BTCUSD on TradingView.com
With how strong dip buyers have been absorbing any and all drops, anything is possible at this point. However, if there was at any point a level where Bitcoin could take a breather before a retest of $20,000, this would be it.
Coincidentally, exchange inflows from whales and miners show that big players have started to sell. When the tide finally turns, any correction could get violent quickly.
Featured image from Deposit Photos, Charts from TradingView.com