Bitcoin price suddenly regains bullish momentum with $20K in sight

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Bitcoin (BTC) remains in the spotlight after MassMutual became the latest company to allocate $100 million of its portfolio into Bitcoin. This is adding to the impressive buy pressure at the moment, renewing hopes of Bitcoin breaking $20,000 in December. 

While a correction occurred in the past week, Bitcoin’s price bounced above the crucial level at $18,600 and is now targeting new all-time highs. However, since the breakout occurred during the weekend, one concern for the bulls is the relatively low volume of the bounce during the weekend.

Bitcoin breaks above $18,600, back into the range

BTC/USD 4-hour chart. Source: TradingView

The 4-hour chart tells everything about the recent move of Bitcoin. Initially, Bitcoin’s price fell through the crucial support zone at $18,500 and dropped towards the next support at $17,600.

This support zone held as support, resulting in a bullish divergence. Similarly, the bears couldn’t force a breakdown below $17,600 with buyers stepping in at this level.

From there, the crucial resistance was $18,500, which was quickly broken in several hours. This move also saw a substantial rally toward the all-time high resistance zone at $19,500.

Will Bitcoin copy previous movements again?

BTC/USD 1-day chart. Source: TradingView

This outlook gives an insight into the buildup of ranges after an impulse move to the upside. Bitcoin’s price has seen several during the year. The first impulse move occurred before the halving, the second one in August, and the last one over the past few months.

However, every time such an impulse move occurs, a range is constructed as markets need to generate strength to continue the momentum. Nothing goes up in a straight line, and tests of previous resistance levels have to occur to continue the momentum.