Bitcoin price gets closer to the last big hurdle before $20,000

26


While the United States’ election is still undecided, Bitcoin (BTC) is experiencing a major rally as BTC price has nearly reached $16,000 on Nov. 6, the highest level since January 2018.

Other asset classes have also been doing well such as Nasdaq, which saw gains of more than 7% in recent days. In the cryptocurrency markets, Ether (ETH) has started to climb as well with ETH hitting $445.

The last weekly hurdle before a new all-time high is close

BTC/USDT 1-week chart. Source: TradingView

The weekly chart of Bitcoin is showing the final hurdle before the new all-time high can be reached, as it’s facing the resistance zone between $15,800-16,800.

The probability of a breakthrough in one-go is not high given that the price of Bitcoin has already surged by more than 50% in recent weeks.

Since the rally may now be overextended as several indicators suggest, it’s unlikely to anticipate further continuation. In other words, traders will likely be taking some quick profits after such a huge rally in a short period of time.

Therefore, the most likely support zone based on the weekly chart is found at the $11,600-12,000 area. This zone has been a crucial resistance to a breakthrough in the previous years as Bitcoin’s price has been constantly rejected in this area. A support/resistance flip in this area would be relatively healthy.

Fear & Greed levels reaching levels not seen before

The Fear & Greed Index is currently showing a value of 90, which is classified as extreme greed and warning traders that a correction should not come as a surprise.

Crypto fear & greed historical index. Source: Alternative.me

The last time this sentiment level was reached was during the summer of 2019. This rally ran from $3,200 to $13,800 and ended in a correction of more than 50% in the following months.

Total market cap attempting a breakout continuation

Total market capitalization cryptocurrency 1-week chart. Source: TradingView

The total cryptocurrency market capitalization is showing a clear breakout above the recent high of $390 billion.

This breakout looks likely to continue rallying towards $500 billion as that’s the next resistance zone found on this chart. However, to sustain such a rally, the total market capitalization of cryptocurrencies has to hold above $390 billion as that would potentially result in a bullish support/resistance flip for more upside.