Bitcoin price analysis – BTC coin on candle chart illustration showing Bitcoin price
Prior to the recent break above the $11,000 mark, which many attribute to news of Square’s BTC investment, the Bitcoin Bank share price was trading in an increasingly narrow range for more than a week. Thereafter, the BTC price rose from around $10,500 on October 8 to an all-time high of $11,692 on October 12. Despite the breakthrough, the asset failed to regain the important $12,000 mark, which has become a strong resistance level.
According to the analyst and trader „Crypto Michael“, breaking through this level and transforming it into a support is the crucial step for the Bitcoin price to reach USD 17,000 in 2020. In a post, the analyst says that traders and investors need only watch the resistance zone of $12,000 to $12,400, the breach of which would result in another explosive price rise:
The daily chart of Bitcoin shows a clear upward movement towards the upper resistance zone. The critical factor to watch is whether the $12,000 to $12,400 resistance zone is breached, as this would mean that another impulse wave is expected on the horizon.
Bitcoin Price Chart
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Current Bitcoin price history a sign of the Bullrun?
The Bitcoin price has been in a tight price range over the last few weeks and even now, after the much needed upward movement, it is still tied to a certain price range, only at a higher price level. While this is seen by traders and investors as boring and uneventful, Crypto Michael says that this may signal the beginning of a big bull market as this is similar to the situation in 2016 before the 2017 bull market.
If that is the case, the resistances in the Bitcoin price will change to supports. Price movements within a range are called consolidation phases, which eventually give the price enough strength to break resistance.
The Bitcoin price could therefore spend some time at $11,000 to $11,500, eventually breaking resistance at $12,000 and turning it into a support zone.
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