The price of Bitcoin is on the verge of reaching its highest monthly record, but buyers will have to break the $ 14,000 resistance barrier to record a new historic high.
To Report Bitcoin Telegraph, the bitcoin, went through turbulent days this year and after falling unbelievably to $ 3,700 in March, it was able to cross the $ 14,000 threshold in the months after. In recent days, Bitcoin, with the highest price since January 2018 (December 96), has been able to touch the price level of $ 14,100.
Thus, with the successive record-breaking of Bitcoin, the possibility of a new uptrend is greatly strengthened. In addition, the US dollar index, which is inversely related to its value, is recovering amid widespread fears of the coronavirus, which could boost the bitcoin’s uptrend.
Bitcoin has not yet broken the $ 13,700 to $ 14,250 resistance range
Looking at the weekly chart, we can see the important levels that breaking the barrier is necessary to continue the upward momentum. One of these levels is the resistance range formed around $ 14,000. Breaking this range could ignite a climb to reach the next resistance threshold in the range of $ 16,500 to $ 17,000.
These two levels are the last hurdles facing Bitcoin in setting a new historical ceiling. However, many altcoins have a long way to go to set new records compared to their peak in 2017.
There are also two vital levels for a potential downturn. The first and foremost levels are in the vicinity of $ 11,400 to $ 11,800. This range is a major resistance period for two years, which means that it is likely to be retested before any uptrend.
However, if this range is lost, the next support range is in the range of $ 10,100 to $ 10,400. If the market is in a bullish territory, maintaining this range will be crucial.
There is a possibility of setting the highest monthly record for Bitcoin
As can be seen in the monthly chart, the highest monthly record for Bitcoin is likely; This event will coincide with the twelfth anniversary of the release of Bitcoin White Paper.
However, the importance of the current resistance range is that it can be considered the biggest obstacle in front of Bitcoin before moving to the new historic ceiling.
If the resistance range of $ 13,700 to $ 14,200 is broken, the continuation of the current uptrend towards the new historical ceiling will be inevitable; Because in the meantime, there are not many significant levels.
It should not be overlooked, however, that the onset of a new uptrend is usually accompanied by periods of accumulation during which previous resistance ranges are retested and confirmed as support ranges. A period of accumulation would mean that the price of Bitcoin could correct up to $ 11,600 to provide sufficient support for a major uptrend.
The current behavior of the market is reminiscent of the upward cycle of 2016
The 2016 chart shows the accumulation ranges through which a steady uptrend has been formed. Each previous resistance level has been retested for confirmation, followed by a period for accumulation.
Compression usually begins to form after a period of limited solidification and eventually ends in a breakout.
Another big signal that should not be overlooked is quick purchases when the market is reforming. These movements are usually seen in the form of long narrow strips; Because buyers buy faster with lower prices. We will probably see a similar move in the coming weeks in the event of a price correction.
Possible scenario for the price of bitcoin
The price range of 13,700 to 14,250 is a vital resistance range for Bitcoin. If this digital currency fails to break this resistance, the possibility of a price correction will increase.
Therefore, the current probable scenario for Bitcoin is fluctuating in the range of $ 11,400 to $ 14,200. This one-sided consolidation is exactly what we saw in the 2016 accumulation periods.
Ether and other pennies will probably come into play when the bitcoin price correction ends. However, it will take several months for the Altcoins to begin their upward movement.