Bitcoin price has impressively held the $17,200 support level, putting its all-time high once again within reach.
Bitcoin (BTC) has seen a tremendous run, particularly since September, with BTC price surging from $10,500 to $18,400 — a rally of 75% in less than three months.
What’s more, since March, BTC/USD has gained almost 400%, making it the best-performing asset of 2020 and likely catching many investors completely by surprise.
Let’s take a look at the charts to see whether the current rally is sustainable and if a reversal should be expected in the near term.
The weekly chart of Bitcoin shows a massive run in the previous period as the region around the all-time high is being tapped.
A clear resistance zone is marked around this all-time high and, thus, may serve as a trigger for investors to take some profits off the table.
Currently, there are multiple arguments for a potential correction, including the Fear & Greed Index nearing record highs.
There are several key price levels to watch if Bitcoin corrects before reaching $20,000. The first level of interest for traders can be found at around $16,000. The next levels are at $13,500 and $11,600.
The total market capitalization of cryptocurrencies has arrived at the next and final resistance zone before a possible new all-time high: $500 billion is likely to be a significant hurdle to overcome.
Remarkably, Bitcoin’s price is now just 10% beneath its all-time high and has already broken its all-time high market cap.
Meanwhile, the total cryptocurrency market cap is still down 35% from its all-time high. This shows that Bitcoin is currently in the spotlight. Altcoins will most likely begin to play catch-up later on.
However, if the cryptocurrency market starts to correct, the most likely area for a support/resistance (S/R) flip is around $380 billion to $400 billion. This level hasn’t been backtested yet, as an S/R flip here would certainly be a bullish sign for more upside.
Such S/R flips are quite common in bull markets and very healthy for continuing the general uptrend.