Bitcoin Makes Yearly Highs: Where to Next?

2020年10月23日

Starting on the 19th of October, Bitcoin became increasingly bullish, rising in momentum before peaking out around $13,200. The coin is momentarily consolidating between $12,700-$12,800, and appears unable to push higher.

The $12,000 Level
BTC broke the critical resistance at $12,100, which was the highest resistance level of 2020 so far. This breakout is crucial, as Bitcoin has attempted a breakthrough at this level four times since August, with no success. The last time this level was broken was one year ago when Bitcoin had an astonishing rally of more than 250%. This level also acted as an important support during Bitcoin’s strongest bull-run in December 2017.

Where to Next?
The current resistance level stands around $13,000-$13,200 (this is where the recent rally stopped). This level was only briefly tested during last year’s rally. Therefore it should not be particularly solid, and BTC will probably have an easier time achieving a breakthrough.

The next resistance level stands at $14,000. This resistance stands at the peak of the summer 2019 bull run. Breaking this level will mean that we are in the strongest uptrending market since December 2017, and we have a chance to make all-time highs.

We might face a small correction before the bull market continues. If that’s the case, then we can expect BTC to retrace back to $12,000. If the $12,000 level breaks, we could see a retracement to $11,000 or even $9,800. However, judging by the strength of the bullish momentum, it is unlikely that Bitcoin will drop below $12,000 in the near future.

Note: It is not recommended to use the 3-Day chart when doing your analysis or trading. We have used it solely to provide a better visual representation of Bitcoin’s price.