- Bitcoin achieves new yearly highs but buyers have their eyes glued on the $20,000.
- A paralyzing breakdown might come into the picture if Bitcoin corrects beneath $16,000.
Bitcoin finalized the journey to $16,000 Thursday, proving to the world that it is in a full-blown bull cycle and is not about to stop. The flagship cryptocurrency achieved new yearly highs at $16,500 but appears to have stalled. At the time of writing, BTC/USD is changing hands at $16,400 after a minor correction.
The trend is largely in the hands of the bulls despite the shallow correction. For now, all eyes are glued on $17,000, while the ultimate goal is to see Bitcoin trading above $20,000. A golden cross on the daily chart gives credence to the bullish outlook. A gold cross is formed when a short-term moving average crosses above a longer-term one.
For instance, recently the 50-day Simple Moving Average (SMA) reclaimed its position above the 100-day. Also adding credibility to the bullish narrative is the uptrend of the MAs slightly below the rallying prices.
BTC/USD daily chart
Consolidation is likely to come into the picture, allowing buyers to a hiatus before planning the next angle of attack on higher levels, starting with $17,000. The Relative Strength Index reinforces the possible consolidation following the immense created at the midline.
Price above $17,000 could be the final guarantee for Bitcoin trading above its all-time high as the fear of missing out is likely to engulf investors. An increase in buy orders might create enough volume to support Bitcoin in the run-up to new all-time highs.
It is worth noting that a correction will come into play if BTC falls under $16,000. Fear and panic may also creep into the market, causing an upsurge in sell orders and creating immense selling pressure to force a massive breakdown. Support is anticipated at $15,000, $14,000 and $13,000. Other key levels to keep in mind include the 50 SMA, the 100 SMA, and the 200 SMA.
Bitcoin Intraday Levels
Spot rate: $16,486
Relative change: 176
Percentage change: 1%