• Bitcoin is currently testing a key resistance zone around the $16,800 mark.
• If there is a valid bullish breakout, it could lead to a rise towards the $18K resistance level.
• A breach of this significant resistance level could result in a strong bull run in the crypto market.
As we enter the new year, the cryptocurrency market is beginning to show some interesting movements, and Bitcoin is no exception. The world’s leading digital currency by market cap is inching closer to a key resistance zone around the $16,800 mark, and the outcome of this situation could potentially determine the short-term trend for the crypto market.
On the daily timeframe, the 50-day moving average is being tested once more, and if there is a valid bullish breakout, there would likely be little resistance standing in the way and a rise towards the $18K resistance level would be imminent. A breach of this significant resistance level could result in a strong bull run in the crypto market, and could potentially pave the way for a new all-time high.
However, if the resistance zone holds and the bulls fail to push the price beyond the $16,800 mark, bearish action could set in and the price could potentially drop to the $14K support level. This could potentially cause a major dip in the crypto market, as the general sentiment among traders and investors would become more bearish.
At the moment, it is difficult to determine with any certainty which direction the price of Bitcoin will take, as there is currently a tug of war between bulls and bears. It is important for traders and investors to exercise caution when making any decisions and to closely monitor the price action for any signs of a potential breakout.
The coming days and weeks will be crucial for the crypto market, as the outcome of this resistance zone will likely determine the direction of the market in the near-term. As always, it is important to stay informed of any news and developments in the industry, and to stay alert for any potential opportunities that may arise.