Bitcoin rate overcame $ 11,000: why the $ 13,000 level is the last barrier before the jump to $ 20,000

By World Crypto | World Crypto | 9 Oct 2020


Today the BTC price has crossed the $ 11,000 level and now the bulls are trying to change the status of this key level from resistance to support. The price jump occurs as part of a bullish breakout of the symmetrical triangle continuation pattern and amid sudden weakness in the US dollar.

Buyers are testing the $ 11,000 level again

The leading cryptocurrency has been in the green for three days in a row. Yesterday, the first signs of a breakout of the triangle formed on the daily timeframe appeared on the chart.

Initially, this triangle was perceived as a bearish pennant after the breakout of the head and shoulders reversal pattern. However, active protection by buyers of the $ 10,000 level for seven days in a row could be a signal that the leading cryptocurrency is trading in the 4-digit area for the last time.

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                 Potential Triangle Breakout Target on BTC Daily Chart

The potential target of a bullish symmetrical triangle breakout is closer to $ 12,000, so the short-term surge could continue.

Why $ 13,000 is the last hurdle before the jump to $ 20,000

There are two resistance levels left before Bitcoin that separate it from testing the last barrier before the jump to $ 20,000 - these are $ 11,200 and $ 12,500. Why is the $ 13,000 mark key?

According to renowned trader Salsa Tekila, a break above $ 13,000 is a clear path to a new price high.

In my opinion, $ 13,000 is the most important macro level of Bitcoin.

  • The rebound in 2018 led to a pullback to $ 3,000.
  • The rebound in 2019 resulted in a crash of up to $ 3,000.
  • One test attempt in 2020.

Breaking and holding higher will make me believe in the all-time high.

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As can be seen in the analyst's chart, in 2019 the specified barrier limited the recovery rally of Bitcoin, since then buyers have not been able to fully test it.

Investors from the traditional financial sector, including Ark Invest CEO Katie Wood, also emphasize the importance of the $ 13,000 level. Back in early August on the ITK podcast, Wood explained:

The $ 13,000 level is important because if we break it, then technically, the remaining resistance will be weak and we will probably return to the peaks that were noted at the end of 2017, which is about $ 20,000.

Now we are not sure if this will happen. We can stay in the new trading range, only at higher level than the current $ 6,000-$ 10,000.

So, is it possible that after 2 months of consolidation, the leading cryptocurrency is finally ready to rally?

 

 

 

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World Crypto
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