Bitcoin (BTC) is showing significant strength as the bitcoin price has increased over 60% over the course of six weeks, rising from $ 10,000 to $ 16,500 and leaving many investors behind.
These investors were waiting for the CME gap to close at $ 9,600, which did not happen. However, can the market expect an improvement, or is there a further strengthening for the markets?
Bitcoin posts the sixth consecutive green weekly candle
The daily chart shows some important levels to watch. If the Bitcoin price wants to continue its uptrend, the previous resistance zone will have to flip for support.
A similar example is shown through a previous breakout at $ 13,200. The area acted as resistance before the breakout, but immediately flipped over to become the new support. This support / resistance continued further into $ 16,500.
The $ 15,500- $ 15,700 area implies the same significant construction as the previous $ 13,200 area. Placing the $ 15,500- $ 15,700 area means that there is a possibility of further continuity, while a breakdown confirms a recessionary situation that should push the price down. This downward move could also see the BTC drop to the $ 14,000 level.
$ 12,000 improvement is still on the table
The weekly deadline shows an exact resistance level at $ 12,000, which broke six weeks ago. The next huge resistance zone is found between $ 15,750 and $ 16,500, which hit last week.
However, is there a possibility of a continuation after such a massive boom? One argument is that there are still many untold levels below the current spot price where liquidity can be found.
In addition, sensory slowdowns have accelerated euphemisms as more institutions jump on the bitcoin bandwagon, so a pullback should not come as a surprise.
As the chart suggests, there could still be an improvement toward $ 12,000, which used to be a significant level. This level broke after keeping it for two years. However, the region did not have a recurrence.
Investors and traders should see this level as a possible entry of interest.
Fear and greed index says market is hot
The Crypto Fear and Greed Index measures various variables to measure the current market sentiment, which is still 90 out of 100. This level qualifies as “extreme greed”.
This level was reached only once before. This last one marked the top of the bull run in June 2019.
Of course, this is not a completely reliable indicator, and traders and investors should not blindly estimate their strategy based on this one metric. Nevertheless, it gives useful information on the current state of euphoria in the market.
Given that FOMO – the fear of being missed – is setting in, an improvement will put everyone back on their feet again. As previously stated, such pullbacks would actually be very healthy for a hot market.
Levels to view on lower time frames
The four-hour chart shows a clear uptrend since the breakout at $ 10,000. However, there are some important levels to maintain this momentum.
The red box identifies liquidity above recent highs. To keep the climb high, a clear breakthrough is to be achieved in this resistance zone with a $ 16,500 area immediately flipped for support. Otherwise, the breakout will likely be fake first and just one tap for liquidity before it comes to market.
As discussed earlier, the $ 15,600- $ 15,750 area has to hold more upside, with the next significant area of resistance around $ 17,500. If that area fails to place as support, the next support area is found to be from $ 14,800 to $ 15,000. A possible slowdown support / resistance flip of the $ 15,600- $ 15,800 area would be triggered more negatively.
If this happens, the next area of support will be $ 13,700 to $ 13,900 and $ 12,800 to $ 13,200.
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