Bitcoin Price Sets Another New Yearly High, Grinding Closer $17,000; How Nigh Is The Reversal?

Bitcoin price blasts last week’s high to trade a new 2020 peak at $16,895.
BTC/USD is poised for a retreat, but bulls hope to hold the price above $16,500 to sustain the uptrend to $17,000.

Bitcoin price has rallied by more than 28% since the lows traded early November around $13,215. The flagship cryptocurrency also hit new yearly highs after overcoming the resistance at $16,500. At the time of writing, BTC is teetering at $16,760, following a minor retreat from the 2020 high of $16,895.

The bull market is in full swing, with most investors still buying for fear of missing out. It is worth noting that the year is nearing the end; hence, investors anticipate the continuation of the majestic uptrend. On the other hand, some investors who bought during the 2017/2018 bull-run could be buying more to ensure that they breakeven as soon as possible.

Higher support, preferably at $16,500, is needed by the bulls to plan the next attack mission on $17,000. Most analysts expect resistance slightly above $17,000, but the rest of the journey to $20,000 could be relatively smooth, probably due to the fear of missing out (FOMO).

BTC/USD 4-hour chart

Meanwhile, Bitcoin is trading within the confines of a forming ascending wedge pattern. A wedge pattern taking this form suggests that an asset’s bullish momentum is nearing its ultimate end; therefore, a reversal is in the offing. In other words, Bitcoin could soon reverse, mostly if the resistance at $17,000 becomes stubborn, and buyers lose interest and traction.

On the downside, support above the channel’s lower trendline must hold for Bitcoin to remain in its safety zone while preventing significant correction. The initial point of contact if the wedge pattern support is shattered is the 50 Simple Moving Average. Other vital levels to keep in mind include $15,600, the 100 SMA, $14,800, and the 200 SMA.