With the breakthrough of the $17,000 resistance, Bitcoin is now on track to its all-time high at $20,000!
Breakthrough Importance The breakthrough of the $17,000 is of utmost importance as it was the last significant resistance on Bitcoin’s path to $20,000. This level acted as a resistance before Bitcoin reached the all-time high, and afterward, it prevented Bitcoin from reaching $20,000 again.
What Happens Next? This level was the strongest in Bitcoin’s path to $20,000. Therefore, due to the strength of the bullish momentum, Bitcoin will probably test its all-time high once again in the near future. However, Bitcoin hasn’t touched this level in nearly three years, and it is unlikely that we will achieve a breakthrough and make new all-time highs just yet.
The most probable short term outcome is that we will push close to $20,000, get rejected by this level, and head back to $17,000. This rally has been very impressive so far but also dangerous. In total, Bitcoin rose by around 65% in just 42 days; this equates to approximately 1.5% growth every day for the past six weeks. While this rally has been great for holders and traders, it is only natural that some form of correction will ensue.
If a correction follows soon, then the newly broken $17,000 level will be the first important support level. Following this level will be the $16,000 support BTC broke last week, and then finally, we have the $14,000 level. Although Bitcoin can fall even further than $14,000, that is not as likely to happen. Many traders and investors expect Bitcoin to be very bullish in the upcoming year due to the halving and increasing institutional investment.