Bitcoin Price Fully Recovered After the Early 2020 Break Down; Will It Settle Above the All-Time High by 2021?

In the first half of the year, Bitcoin bulls were contesting to break the psychological price level of $10,000. In January, buyers retested the $10,000 to breach it but were resisted in February.

The selling pressure extended to March. Sellers took the advantage to crash Bitcoin on March 12, to as low as $4,000. That day, March 12, 2020, was called Bitcoin “Black Thursday”. 

According to reports, Bitcoin traders and investors were gripped with fear as there was panic selling and stop losses were being hit. The symbolic aspect of it was that the “Black Thursday” happened after the $10,000 resistance was retested. Bitcoin dropped more than 50% but it rebounded later. Following a successful rebound, the king coin resumed an upside momentum up till July. In July, the Psychological price level of $10,000 was broken. The bullish momentum was sustained. Bitcoin has rallied above $18,000 at the time of writing.

Key Resistance Zones: $18,000, $19,000, $20,000

Key Support Zones: $7,000, $6,000, $5,000  

Bitcoin monthly chart indicator reading

Bitcoin is in a smooth uptrend after the March 12, “Black Thursday” incident. The candlestick wick tested the bullish trend line and the $4000 price level. The uptrend will continue as long as the bullish trend line remained unbroken. BTC price is likely to rise to 2021 as long as price bars above the SMAs.

Bitcoin weekly chart indicator reading

Bitcoin is at level 75 of the Relative Strength Index period 14. The coin is trading in the overbought region of the market. Sellers have emerged in the overbought region to push the price down. It is unlikely if the psychological price level will be broken. The $20,000 resistance has not been broken since 2017. Besides, BTC is weak at the time of writing. However, in 2021, the BTC price will rally above the recent high. 

Conclusion

Bitcoin bulls broke the psychological price level of $10,000 but may not break the $20000 price level. This is because the rise of the U.S dollar is affecting the BTC price movement. The Fibonacci tool indicated a retest of the $20,000 overhead resistance but the resistance level has not been broken convincingly.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.