Bitcoin worth is immediately gaining bullish curiosity once more with USD 20,000 in sight
Bitcoin (BTC) remains in the spotlight after MassMutual became the youngest company to invest $ 100 million of its portfolio in Bitcoin. This adds to the impressive buying pressure at the moment and renews hope that Bitcoin will break $ 20,000 in December.
While there was a correction last week, the price of Bitcoin jumped above the crucial level at USD 18,600 and is now aiming for new all-time highs. However, since the outbreak occurred over the weekend, a problem for the bulls is the relatively low volume of rebound over the weekend.
Bitcoin breaks back into the range above $ 18,600
BTC / USD 4-hour chart. Source: TradingView
The 4-hour chart shows everything about the recent Bitcoin move. Initially, the price of Bitcoin fell through the critical support zone to $ 18,500 and fell towards the next support at $ 17,600.
This support zone served as support which resulted in a bullish divergence. Similarly, the bears could not force a collapse below $ 17,600 if buyers stepped in at that level.
From there, the crucial resistance was $ 18,500, which was quickly broken in several hours. This move also resulted in a significant rally towards the all-resistance zone at $ 19,500.
Will Bitcoin re-copy previous moves?
BTC / USD 1-day chart. Source: TradingView
This outlook gives an insight into the structure of areas after an upward impulse. The price of Bitcoin has seen several over the year. The first momentum movement came before the halving, the second in August and the last in the last few months.
Every time such momentum movement occurs, a range is created as markets need to generate strength in order to continue the momentum. Nothing goes up in a straight line and previous levels of resistance must be tested to continue the momentum.
A rising wedge has been established with a false break above its recent high in each of the previous range constructions. The likelihood of this happening again is increasing given the current low volume weekend move.
From this perspective, another move towards $ 21,000 is on the table, where the $ 19,500 area should be tilted for support immediately. If it doesn't, the process repeats and Bitcoin is most likely falling back into range. Therefore, the observed levels are $ 14,000 and $ 16,000 for support zones with higher timeframes.
CME futures closed at $ 18,115 on Friday
CME Futures 4-hour chart. Source: TradingView
The gaps in the CME futures chart have been the focus of much discussion and remain an important variable to keep track of.
A new CME gap is created as the current closing price is $ 18,115. As such, this futures gap is likely to become a major point of entry or exit, which is why such gaps often become and are filled into a self-fulfilling prophecy.
There are two open CME gaps from recent price action. The first was not fully filled as there is still open air available for $ 17,015. The second price of $ 18,115 is created due to the bullish price action over the weekend.
Critical levels to watch out for volatility
BTC / USDT 4-hour chart. Source: TradingView
The crucial levels are easy to see, as the graphic shows. The zone of resistance to breaking is $ 19,400 to 19,600. This is the highest resistance zone of all time and the last before BTC / USD goes into pricing.
However, an outbreak does not guarantee a continuation. The resistance area must first be flipped in order for the rally to continue. Otherwise, a fakeout becomes the likely scenario as described in this article.
On the flip side, the $ 18,500 to $ 18,600 range must be held in order to create the conditions for testing new all-time highs. If that fails, the potential re-exams of $ 16.00 and even $ 14,000 will remain on the table.
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