Bitcoin Passes $16k Resistance
Global equities begin to cool off from recent vaccine news. Most stocks are trading sideways leaning towards the downside while bitcoin is trying to finish the job it started. The $16k mark was breached early today but was rejected and pushed back to $15.8k. The bulls didn’t give up without a fight as they carried the price back up to the psychological resistance of $16k. This is great news since it’s been almost 3 years since we saw $16k bitcoin.
Despite having many sell orders at $16k, buyers were able to fill them all up and more. The repeated retest of the resistance level will eventually turn it into our new support. Speaking of support, we see whale clusters forming at these high levels as the ‘fear of missing out’ is influencing institutional investors. We see a solid foundation near $13.6k-$14k and a developing one at $15k.
This rally has the support to bring the price past all-time-highs if we continue to have consistent upwards movement. The longer it takes, the better. Cameron Winklevoss, co-founder of Gemini, emphasized the importance of BTC holding above the $14,900 to $15,000 support range. He said:
“Bitcoin closed yesterday above $15,000 for the third day in a row. This is the first time in history that Bitcoin has held this price level for 72 hours. A new record.”
When comparing today’s relative strength index (RSI) with the one from early 2017, we see that we’re only at the start of a major bull run. According to analyst Willy Woo’s chart, bitcoin’s on-chain RSI is just warming up. Red verticals are the halvenings, providing the bullish supply shock impulse. The red bubbles show where we are today compared to where we were back then.
I hope we can prolong new all-time-highs to build a solid foundation, developing multiple support levels along the way so that when the correction happens there are multiple price floors keeping us afloat. Many believe that $20k will be breached before this year while I hope that we see it sometime in Q1 of 2021.
