Bitcoin Tops $16,000 In Aggressive Fight For New Yearly High, How Nigh Is The Correction?


Bitcoin Tops $16,000 In Aggressive Fight For New Yearly High, How Nigh Is The Correction?

  • 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

BTC/USD price chart
BTC/USD price chart by Tradingview

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%

Trend: Bullish

Volatility: Low

Author: John Isige
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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John Isige 748 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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