Bitcoin Tops $16,000 In Aggressive Fight For New Yearly High, How Nigh Is The Correction?

  • Bitcoin achieves new yearly highs but buyers have their eyes glued on the $20,000.
  • A paralyzing breakdown might come into the picture if Bitcoin corrects beneath $16,000.

Bitcoin finalized the journey to $16,000 Thursday, proving to the world that it is in a full-blown bull cycle and is not about to stop. The flagship cryptocurrency achieved new yearly highs at $16,500 but appears to have stalled. At the time of writing, BTC/USD is changing hands at $16,400 after a minor correction.

The trend is largely in the hands of the bulls despite the shallow correction. For now, all eyes are glued on $17,000, while the ultimate goal is to see Bitcoin trading above $20,000. A golden cross on the daily chart gives credence to the bullish outlook. A gold cross is formed when a short-term moving average crosses above a longer-term one.

For instance, recently the 50-day Simple Moving Average (SMA) reclaimed its position above the 100-day. Also adding credibility to the bullish narrative is the uptrend of the MAs slightly below the rallying prices.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Consolidation is likely to come into the picture, allowing buyers to a hiatus before planning the next angle of attack on higher levels, starting with $17,000. The Relative Strength Index reinforces the possible consolidation following the immense created at the midline.

Price above $17,000 could be the final guarantee for Bitcoin trading above its all-time high as the fear of missing out is likely to engulf investors. An increase in buy orders might create enough volume to support Bitcoin in the run-up to new all-time highs.

It is worth noting that a correction will come into play if BTC falls under $16,000. Fear and panic may also creep into the market, causing an upsurge in sell orders and creating immense selling pressure to force a massive breakdown. Support is anticipated at $15,000, $14,000 and $13,000. Other key levels to keep in mind include the 50 SMA, the 100 SMA, and the 200 SMA.

Bitcoin Intraday Levels

Spot rate: $16,486

Relative change: 176

Percentage change: 1%

Trend: Bullish

Volatility: Low

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