The price of Bitcoin is on the verge of having its biggest monthly closing of all time, but the bulls are still expected to break $14,000 for a chance of a new record
The price of Bitcoin ( BTC ) is undoubtedly having an impressive year after it fell to $3,700 in March, but then rose to $14,000 in the following months. BTC has now reached its highest point since January 2018, with the price reaching $14,100 .
Thus, the likelihood of a new bullish cycle is increasing sharply as the price of Bitcoin continues to make new highs and lows higher. Moreover, the strength is still seen while the US Dollar Currency Index, with which it is typically inversely correlated, is also recovering amid fears of coronavirus.
Bitcoin has yet to reach the $13,700-14,250 area
The weekly chart shows some crucial levels to watch in order to continue the bullish momentum. One of them is the current resistance zone around the $14,000 limit. Breaking through this resistance zone would initiate more strength towards the next limit around $16,500-17,000.
These two levels are the final hurdles before a possible new all-time high, while most of the altitudes still face huge losses compared to the 2017 highs.
There are two crucial levels to watch on the downside. The first and main is the $11,400-11,800 area. This has been the crucial endurance zone for two years, which means it could pass a new test first of all.
However, if this area is lost, the next support zone is found between $10,100-10,400. These two zones are essential to maintain if the market is in high ground.
The largest possible monthly closure for Bitcoin
As the monthly chart shows, the biggest monthly closing of all time is possible for Corona Millionaire with Bitcoin- an incredible achievement 12 years after the release of the white paper.
However, it also shows the importance of this resistance zone, as it is the last major obstacle before the historic maximum can be challenged.
If $13,700-14,200 breaks, the continuation of new all-time records is almost guaranteed, as there are not many levels between the two.
However, the beginning of a new high cycle is usually accompanied by periods of accumulation, through which previous resistance zones are retested and confirmed as support.
This accumulation period would mean that the price of Bitcoin can be corrected to $11,600 to find sufficient support before a large upward movement.
Current market behavior comparable to the 2016 cycle
The 2016 graph shows these accumulation ranges through which a healthy trend has been established. Each previous resistance level was retested for confirmation, after which a range was set to accumulate Bitcoin.
After this limited construction, compression began to increase, resulting in a massive break.
Another massive sign is the quick purchases during market corrections. This is shown by long wicks as buyers quickly enter the purchase as the price is falling. A similar movement may occur if the market corrects in the coming weeks.
Possible scenario for the price of Bitcoin
The current area of $11,400-11,800 is a crucial resistance zone. If the price of Bitcoin falls to break this resistance zone, a correction will become the likely scenario.
Therefore, the possible Bitcoin scenario is an action limited to a range of $11,400 to $14,200. Such a lateral construction would be similar to the 2016 accumulation period.
Ether and other altcoins can then appear in the part at the time Bitcoin finishes its correction and goes into the limited lateral construction. It will probably take a few more months before the altcoins begin to rise.