Bitcoin ( BTC ) remains in the spotlight after MassMutual became the last company to allocate $100 million of its portfolio in Bitcoin.
This is increasing the impressive buying pressure at the moment, renewing hopes that Bitcoin will earn $20,000 in December.
Although a correction occurred last week, the price of Bitcoin Victory jumped above the crucial $18,600 level and now targets new historical records. However, as the breakout occurred during the weekend, a concern for the bulls is the relatively low volume of the jump over the weekend.
Bitcoin surpasses $18,600, returning to the track
The 4-hour chart tells everything about the recent Bitcoin movement. Initially, the price of Bitcoin fell through the crucial support zone by $18,500 and dropped to the next support by $17,600.
This support zone remained as support, resulting in a bullish divergence. Similarly, bears were unable to force a collapse below $17,600 with buyers entering this level.
From then on, the crucial resistance was $18,500, which was quickly broken in several hours. This move also saw a substantial recovery towards the all-time high resistance zone at $19,500.
Will Bitcoin copy the previous movements again?
This perspective provides an insight into the accumulation of tracks after an upward thrust movement. The price of Bitcoin has increased several times during the year. The first impulse movement occurred before halving, the second in August and the last in recent months.
However, every time this impulse movement occurs, a track is built, as the markets need to generate momentum to continue the momentum. Nothing rises in a straight line and tests of previous resistance levels must occur to continue the momentum.
An upward wedge has been established with a false leak above its recent high in all previous range constructions. The probability of this happening again is increasing due to the current low-volume movement over the weekend.
From this perspective, a move to $21,000 is back on the table, which should immediately mean an area reversal of $19,500 per support. If this does not happen, history will repeat itself, and Bitcoin will probably return to the interval. Therefore, the levels to be observed are $14,000 and $16,000 for longer support zones.
WEC futures closed at $18,115 on Friday
The gaps in WEC’s futures chart have been the focus of much discussion and remain an important variable to watch.
A new WEC gap will be created, as the recent closing price is $18,115. As such, this gap in the future is likely to become a significant entry or exit point, which is why these gaps often become a self-fulfilling prophecy and are filled.
There are two open WEC gaps from the recent price action. The first did not fill completely because it is still open at $17,015. The second at $18,115 will be created because of the rising price on weekends.
Crucial Levels to Watch Volatility
The crucial levels are easy to detect, as the graph shows. The break resistance zone is $19,400-19,600. This is the all-time high resistance zone and the last one before BTC/USD goes into price discovery.
However, a breakout does not guarantee continuation. The resistance area must first turn to support the recovery to continue. Otherwise, a false one will become the likely scenario, as described in this article.
On the negative side, the $18,500-18,600 area needs to be maintained to prepare the ground for new all-time records. If this fails, the possible $16.00 and up to $14,000 retests remain on the table.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of the Cointelegraph. Every investment and trading movement involves risk. You should conduct your own research when making a decision.