A $20,000 breakup? As the weekly close approaches, the bitcoin (BTC) price tackles a crucial resistance. The cryptocurrency must overcome this obstacle for bullish continuity in the very short term. If it fails to do so, this trader indicates that Bitcoin just needs to end the week above a downtrend line it has already crossed at this point, to confirm an important first breakout.
Bitcoin price facing resistance at $19,500
Bitcoin price rises to $19,870 on Bitfinex today, January 13, 2023. The cryptocurrency is trading at $19,867 at the time of writing this article. Its price is currently recording a solid daily gain of 5.5%.
Bitcoin thus continues its ascent above $19,000. On a daily basis, the chart below shows that the Chikou Span (green line – red circle) has reached get out of the ichimoku cloud.
Now Bitcoin price and the Chikou Span are above the Kumo, which had acted as resistance for weeks. If the lights are thus theoretically green on a daily basis, the cryptocurrency is already in the process of test yourself on another resistor around $19,500.
That $19,500 turns out near the Kijun Sen on a weekly basis – red line in the graph below. If Bitcoin allows to hold and end the week above this Kijun Sen which is currently at $19,443, then on paper bullish continuity is possible.
The chart above shows that the Chikou Span (green line) is facing no major hurdles that could prevent it from rising above $19,443.
Downtrend lines: decisive breakouts
For trader Rekt Capital, the price of Bitcoin is already above of “the multi-month downtrend line”, on a weekly time frame – oblique black line in the graph below. Rekt Capital points out that Bitcoin must close the week above this downtrend line to “ confirm breakout “.
Nevertheless, even if the cryptocurrency does indeed manage to confirm this bullish breakout, Rekt Capital specifies that Bitcoin must still franchisor the macro downtrend line on a monthly timescale “to confirm a new bull market”.
As shown in the chart above, the eventual breakout point of this macro downtrend line still lies at several thousand dollars, well above of the current Bitcoin price.
With these rises above $19,000, Bitcoin is on the way to display the achievements of the last few dayseven if at this stage, the cryptocurrency is still exposed to a risk of rejection which could allow a long retracement of its price.
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