Bitcoin (BTC) is still in the spotlight after MassMutual was the last company to commit $ 100 million from its Bitcoin wallet. This adds to impressive buying pressure at the moment and revives hope that Bitcoin will surpass $ 20,000 in December.
Despite last week’s correction, Bitcoin price jumped above the critical level to $ 18,600 and is now targeting new fixed points. However, given the breakout over the weekend, the bulls are concerned about the relatively low volume of the weekend bounce.
Bitcoin is back at $ 18,600
The 4 hour chart shows all about Bitcoin’s recent move. Initially, Bitcoin fell through its critical support area of $ 18,500 and fell to the next support level of $ 17,600.
This support area was tracked as support leading to a bullish rejection. Likewise, bears cannot drop below $ 17,600 when the buyers enter this level.
From there, the crucial resistance was $ 18,500, which was quickly broken in within a few hours. This move also led to a significant rally against the historically high resistance of $ 19,500.
Will Bitcoin copy past moves again?
This view gives an idea of the areas building up after the bullish rally. Bitcoin’s price increased throughout the year. The first impulse occurred before the half, the second in August and the last in recent months.
But every time such an impulse occurs, a range is created where the markets must generate strength in order to continue the momentum. Nothing goes in a straight line, and tests of past resistance levels must be taken for the advance to continue.
A rising wedge was formed by an imaginary breakout at the last elevation of each of the previous ridge structures. The likelihood that this will happen again increases with the current low volume weekend move.
In that view, a move towards $ 21,000 is back on the table, which should immediately cause a reversal of the $ 19,500 area in search of support. If not, it will restore the same record and Bitcoin will likely return to this region again. Thus, levels are targeting $ 14,000 and $ 16,000 for higher time frame support areas.
CME futures closed at $ 18,115 on Friday
Gaps in the future CME map have been the focus of many discussions and remain an important variable to watch out for.
A new CME gap will be created as the final closing price is $ 18,115. As such, this future gap is likely to become an important entry or exit point, and as such, these gaps often become self-fulfilling and filling prophecies.
There are two open holes in the CME from the recent price action. The first has not been completely refurbished as it still costs $ 17,015. Another will be created at $ 18115 due to the bullish price action at the end of the week.
Important levels to find twists
As shown in the diagram, the key levels are easy to define. The area of resistance to penetration is $ 19400-19600. This is a steady high resistance area, the last one before BTC / USD finds the price.
However, a breakout does not guarantee continuity. The resistance area must first reverse for support to continue. Otherwise, the potential scenario described in this article is bogus.
On the other hand, the $ 18,500- $ 18,600 range should still be on stage to test the new glasses head-on. If that fails, potential workouts from $ 16 to $ 14,000 will remain on the table.