Third Time’s the Charm! Bitcoin Achieves Resistance Breakthrough

13 нояб. 2020 г.

Bitcoin has already tried and failed to break the newly formed $16,000 resistance twice. The third time was a charm and a breakthrough was finally achieved.

Current Uptrend Analysis
Since October 8th BTC has been in a near-constant uptrend, growing by more than 50%. One of the best indicators for judging the uptrend on the 4h chart is the 50 EMA. The 50 EMA has stayed below the price during this bull run and acted as a support upon which the BTC’s price has retraced to, before pushing higher. The 50 EMA acted as support after both failed attempts at breaking $16,000.

The Bollinger Bands have also been a useful indicator to judge this uptrend. When the Bands widened, the volatility increased, and BTC showed a clear trend closely following the upper band. When the bands tightened, BTC was locked in a range. The Bands are currently somewhere in the middle, not very wide but also not very tight.

Another critical aspect to note is that we have seen BTC making higher lows during this uptrend. The fact that it continued making higher lows holds weight, as it showcases that the coin is still very bullish, and the uptrend doesn’t look like it will face a significant correction at the moment.

Breakthrough
Yesterday Bitcoin finally succeded in breaking the $16,000 resistance. The price has edged ever closer to the resistance, and then it finally achieved a breakthrough. The price may now retest $16,000 to confirm the breakthrough before moving higher.

The next target for Bitcoin now stands at $17,000. This level acted as an important resistance during the December 2017 bull run.