Bitcoin has witnessed amazing growth in the last couple of weeks. As a matter of fact, it has rallied at above 60 percent in the last 6 weeks. As a result, its value surge ranged between $10,000 and $16,500. Not to mention how surprised the investors were to be left behind.
Earlier, investors hoped that the CME gap would close at $9,600. However, this did not happen. Should investors be worried that a six weeks streak might exhaust Bitcoin? Or, will BTC power through in an unprecedented manner.
Bitcoin Reaches Six Weeks Of Value Surge
Experts believe that the earlier resistance zone needs to make a U-turn for the BTC value to continue rising.
Things become a little clearer if we look at the earlier $13,200 breakout. This particular region had become a point of resistance until it flipped over. The U-turn ensured that it instead supported the continued growth to reach $16,500.
For bitcoin, the region between $15,500 and $15,700 also means the same construction. It’s crucial that the resistance flips to instead support BTC value growth. If the critical region holds, it’s very likely that bitcoin will continue to see upward growth. However, if it breaks, the results are sure to be bearish. Experts believe that a breakdown might lead to a devastating drop to $14,000 for BTC value.
Is A Correction Of $12,00 Possible?
Six weeks prior to this. A resistance of $12,000 was broken successfully. After that, another major resistance between $15,750 and $16,000 was broken some days ago. What many are wondering is that if the bitcoin value growth can continue after such major surges. Many are relying on the hope that there would be untested levels of liquidity beneath this spot.
Moreover, the optimism regarding BTC value has taken in several urged stock market institutions into BTC’s attraction. It has definitely helped in turning the results bullish. As such, a pullback was expected.
Sources say that a $12,000 correction is still possible.
Meanwhile, others like the Crypto Fear and Greed Index have claimed that the stock market is getting overheated. Even so, traders and investors should look at the metrics and data before they make any quick decisions. Another factor for this overactivity is that many fear missing an opportunity as Bitcoin and other digital currencies continue to rise.
While many fear that the natural exhaustion of BTC will bring on unprecedented horrors, experts believe that a pullback on digital currencies will actually be healthy for this overactive market.
Currently, the resistance zone is at $16,500. And for BTC value to continue its positive momentum, this region needs to flip as soon as possible. If it fails to occur, liquidation will flow in before the market even reverses.