Bitcoin price may now see sideways action for a few months after breaking through crucial multi-year resistance at $12,000

Last week was great for Bitcoin investors as Bitcoin price broke a key hurdle at $ 12,000, culminating in a rise from $ 11,300 to $ 13,300 – a $ 2,000 increase within a week. A new yearly high has emerged in the midst of a weak dollar. Besides, many listed companies have made statements regarding the distribution of assets into Bitcoin instead of USD. These arguments point to bullish market momentum, but what important levels should we keep an eye on for sound investment decisions? Let’s take a closer look at the charts.

The $ 12,000 barrier is crucial to Bitcoin price

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Bitcoin price chart by BTC/USD pair on 1-week frame | Source: TradingView

As Bitcoin’s weekly chart shows, the $ 11,600 – $ 12,000 zone is a key area to break down for any bullish continuation. This resistance zone has persisted since the inception of a bear market in early 2018. For more than thirty months, Bitcoin’s price failed to break out of this resistance zone, until last week.

The beginning of a bull market is often flagged by nice support/resistance level tests to continue, also seen at $ 10,000. After testing this support/resistance level, the uptrend continues.

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Bitcoin price chart by BTC/USD pair on 3-day frame | Source: TradingView

The $ 10,000 level has been retested and held, marking a new area of ​​support. Since then, Bitcoin’s price continued to rise, leading to a breakout above $ 12,000. The resistance of $ 11,600 has to turn to support

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Bitcoin price chart by BTC/USD pair on 3-day frame | Source: TradingView

As the $ 11,600 – $ 12,000 level goes up, there are some important thresholds that traders should watch out for in the coming weeks. Usually, buying after such a massive bull run is not the best strategy as it is likely to retest lower levels.

As mentioned, the confirmation of flip-up support/resistance at $ 10,000 guarantees upside momentum. A similar situation can happen here. The $ 11,600 – $ 12,000 key hurdle is likely to see a support test before the market can resume a rally. Resistance levels are found at $ 13,600 – $ 14,000 and $ 16,500 – $ 17,000. However, this is unlikely to be affected in the coming months as range-bound moves seem more likely to happen.

Therefore, traders should pay attention to the $ 13,600 – $ 14,000 and $ 11,600 – $ 12,000 zones as both could become important pivots in the coming weeks.

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Total crypto market capitalization 3-day chart | Source: TradingView

The total market cap shows a clear zone of resistance in the $ 395 – $ 415 billion range. It’s unlikely to have a breakout in one go, but that depends much on Bitcoin’s movement. Hence, a retest of the $ 330 – $ 340 billion support level is very likely and will establish a healthy structure for the start of a new bull market. If the total market cap crosses $ 395 – $ 415 billion, further resistance is found in the $ 510 – $ 525 billion range.

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Bitcoin price chart by BTC/USD pair on 3-day frame | Source: TradingView

There is a very likely case that Bitcoin price will have a correction to the $ 11,600 – $ 12,000 zone for some technical grade price tests. Therefore, it is possible to define the technical structure that limits the scope. Resistance is in the $ 13,500 – $ 14,000 range, and support is in the $ 11,600 – $ 12,000 range.

The above price structure is a perfect starting point for starting a new cycle as it continuously accumulates at higher levels. A break out of this sideways range after a few months could see the next big move, which will likely bring Bitcoin’s price to $ 17,000 and possibly even a new all-time high.

You can see the Bitcoin price here.

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