Whereas the USA’ election continues to be undecided, Bitcoin (BTC) is experiencing a significant rally, as BTC worth practically reached $16,000 at present, the best stage since January 2018.

Different asset lessons have additionally been doing effectively, akin to Nasdaq, which noticed positive aspects of greater than 7% in latest days. Within the cryptocurrency markets, Ether (ETH) has began to climb as effectively, with ETH hitting $445.

The final weekly hurdle earlier than a brand new all-time excessive is shut

BTC/USDT 1-week chart. Supply: TradingView

The weekly chart of Bitcoin is exhibiting the ultimate hurdle earlier than the brand new all-time excessive might be reached, because it’s dealing with the resistance zone between $15,800 and 16,800.

The chance of a breakthrough in a single go just isn’t excessive, provided that the worth of Bitcoin has already surged by greater than 50% in latest weeks.

For the reason that rally might now be overextended, as a number of indicators counsel, it’s unlikely to anticipate additional continuation. In different phrases, merchants will possible be taking some fast income after such an enormous rally in a brief time period.

Due to this fact, the almost definitely help zone primarily based on the weekly chart is discovered on the $11,600–12,000 space. This zone has been a vital resistance to a breakthrough within the earlier years, as Bitcoin’s worth has been continuously rejected on this space. A help/resistance flip on this space could be comparatively wholesome.

Concern and Greed reaching ranges not seen earlier than

The Concern and Greed Index is presently exhibiting a price of 90, which is classed as excessive greed and warning merchants {that a} correction mustn’t come as a shock.

Crypto Concern and Greed historic index. Supply: Alternative.me

The final time this sentiment stage was reached was through the summer season of 2019. This rally ran from $3,200 to $13,800 and resulted in a correction of greater than 50% within the following months.

Complete market cap making an attempt a breakout continuation

Complete market capitalization cryptocurrency 1-week chart. Supply: TradingView

The entire cryptocurrency market capitalization is exhibiting a transparent breakout above the latest excessive of $390 billion.

This breakout seems to be more likely to proceed rallying towards $500 billion — the subsequent resistance zone discovered on this chart. Nonetheless, to maintain such a rally, the full market capitalization of cryptocurrencies has to carry above $390 billion, as that might doubtlessly lead to a bullish help/resistance flip for extra upside.

Key ranges to look at on the Bitcoin chart

BTC/USDT 1-day chart. Supply: TradingView

Bitcoin’s every day chart reveals the BTC worth approaching the next timeframe resistance space at $16,000.

The help ranges to look at are proven on the chart. The primary help space is discovered between $14,000–$14,200, which merchants ought to keep watch over within the quick time period.

On the every day chart, the degrees between $12,800–$13,100 and round $11,600 must be a set off level for potential buy-the-dip entries in case of a correction (after failing to interrupt above $16,000, as an illustration). 

All in all, the sentiment is closely bullish at this level, with the worth at multi-year highs and just one main resistance stage remaining at $16,000 earlier than a brand new all-time excessive comes into play. 

The views and opinions expressed listed below are solely these of the author and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer entails threat. It’s best to conduct your personal analysis when making a call.