Bitcoin could reach close to $18,000 if it breaks this resistance
Bitcoin’s price increases have brought some sunshine to the cryptocurrency sector. Each of CoinGecko’s three timeframes – daily, weekly and biweekly – showed BTC in a positive light.
This is fantastic news for the cryptocurrency market as a whole, as BTC is the dominant currency in the sector.
Here’s a quick look at how Bitcoin has performed recently:
- Optimistic market movement and surprising investor buying
- The technical indicators reveal a range of possible outcomes, some bullish and some bearish, but bears are still there
- There will be no significant price increase this coming week. Next year there could be a breach of the $17,500 barrier
It is clear to some that Bitcoin is growing in popularity, as today’s transaction volume reached a whopping $7.12 billion.
Forecast: Bitcoin to $18,000
The $17,000 mark has been mentioned as a key level by several credible Twitter analysts. Recently, Michael Poppe presented a study that predicts that Bitcoin will hit or rise above $18,000. And yet, is it possible that Bitcoin can reach these heights by December? As they say, anything can happen in crypto.
The leading cryptocurrency’s Relative Strength Index (RSI) is in the overbought upper half, suggesting a possible pullback.
So far it has gone well #Bitcoin.
Would be nice to hold the previous resistance level for support (around $16.6K) and then continue towards $18.3K for a good run. pic.twitter.com/vsfoDWWgZB
— Michaël van de Poppe (@CryptoMichNL) 30 November 2022
The current price of $17,000 is maintained at $16.8k, which is a somewhat unstable support given the volatility of BTC’s price.
All this is within a 4-hour time frame. The daily timescale is currently quite positive, with the coin’s rise breaking the previous decline.
The only thing that could allow it to reach its $18,000 is the rather narrow Bollinger band, which indicates a narrower trading range in the coming days.
A regression analysis reveals an R-value of 0.855, indicating a robust and healthy uptrend in its infancy. MFI confirms this rally with a movement of its own.
Chaikin’s Money Flow Index shows complete bullish dominance, limiting the potential impact of an RSI-supported trend correction.
If the price falls today, we could see a decline towards the support level at $16,800. The bulls can use this support to target the current barrier at $17,500.
Slow and consistent for the target
Investors and traders should remember that the market is highly volatile. The price will rise significantly if a cautious and consistent buying momentum is generated.
According to CryptoQuant statistics, BTC holders are in the capitulation phase, as an increasing number of individuals realize their losses.
Consider the analysis purely theoretical as this may just be a glimpse of better things to come for the coin. As the market recovers from the disaster, BTC may surpass the $17,500 milestone.
CAKE total market cap at $327 million on the daily chart | Featured image from Analytics Insight, Chart: TradingView.com
