Bitcoin price has been showing significant strength as Bitcoin rallied by more than 60% in a matter of six weeks, surging from $10,000 to $16,500 and leaving many investors behind.
If Bitcoin’s price wants to continue its upward momentum, the previous resistance zone has to flip for support. Holding the $15,500–$15,700 area means further upward continuation is likely, while a breakdown confirms the bearish divergence that should push the price down.
The sentiment has flipped from bearish to euphorically bullish as more institutions jump on the Bitcoin bandwagon, so a pullback shouldn’t come as a surprise. A correction toward $12,000 could still occur, which used to be a critical level.
The Crypto Fear & Greed Index is still 90 out of 100 which is qualified as “extreme greed.” This level was only reached once before which marked the top of the bull run in June 2019.
To keep climbing higher, an apparent breakthrough in this resistance zone has to occur in which the $16,500 area immediately flips for support. Otherwise, the breakout will most likely become a fakeout and just a tap for liquidity before the market reverses.
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