Bitcoin worth should break this stage to increase 6-week successful streak

Bitcoin worth has been exhibiting important energy as Bitcoin (BTC) rallied by greater than 60% in a matter of six weeks, surging from $10,000 to $16,500 and leaving many buyers behind.

These buyers had been ready for the shut of the CME gap at $9,600, which didn’t happen. Nonetheless, can the markets count on a correction to occur, or is additional energy possible for the markets?

Bitcoin posts sixth consecutive inexperienced weekly candle

BTC/USDT 1-day chart. Supply: TradingView

The day by day chart exhibits some essential ranges to look at. If Bitcoin’s worth needs to proceed its upward momentum, the earlier resistance zone has to flip for assist.

The same instance is proven by way of the earlier breakout at $13,200. This space acted as resistance earlier than the breakout however instantly flipped to change into new assist. This assist/resistance flip warranted additional continuation to $16,500.

The $15,500–$15,700 space implies the identical essential building because the earlier $13,200 space. Holding the $15,500–$15,700 space means additional upward continuation is probably going, whereas a breakdown confirms the bearish divergence that ought to push the worth down. This downward transfer could even see BTC drop to the $14,000 stage.

A correction to $12,000 continues to be on the desk

BTC/USDT 1-week chart. Supply: TradingView

The weekly timeframe exhibits a exact resistance stage at $12,000, which was damaged six weeks in the past. The following huge resistance zone is discovered between $15,750 and $16,500, which was hit last week.

Nonetheless, is a continuation possible after such a large surge? One argument is that there are nonetheless many untested ranges beneath the present spot worth the place liquidity could be discovered.

Furthermore, the sentiment has flipped from bearish to euphorically bullish as extra establishments leap on the Bitcoin bandwagon, so a pullback shouldn’t come as a surprise.

Because the chart exhibits, a correction towards $12,000 may nonetheless happen, which was a essential stage. This stage broke after holding for 2 years. Nonetheless, a retest of this zone didn’t happen.

Buyers and merchants ought to watch this stage as a possible entry of curiosity.

Concern & Greed Index says the market is overheated

The Crypto Concern & Greed Index measures totally different variables to gauge present market sentiment, which continues to be 90 out of 100. This stage is certified as “excessive greed.”

This stage was solely reached as soon as earlier than. This earlier one marked the highest of the bull run in June 2019.