The price of bitcoin (BTC) is approaching a critical obstacle, and is slightly higher than the opening price for the week. This resistance could send this crypto back below $15,500. Check out this analysis.
A volatile week following the intervention of the BoJ
Since Monday, the bitcoin price has seen some volatility. This has also spread throughout the crypto market. Indeed, the markets were shaken after the intervention of the Bank of Japan (BoJ) on the economic calendar. After the release of the decision, the Japanese yen gained strength, and the USD/JPY pair fell 3%. On bitcoin (BTC), this resulted in the price falling as low as $16,300 yesterday. But after that, the queen of cryptos picked up in value. Currently, it sits above the opening price for the week at $16,746.
The breakout of this opening price means that BTC is now in the green for this week. So, with this bullish momentum, the price is going to approach several hurdles. Once hit, these hurdles could send bitcoin (BTC) back below the November 21 low. However, it should be noted that these barriers are all aligned on the same level. This is the area around $17,500.
Watch out for this obstacle!
This price poses a major hurdle for buyers to achieve a bull-run. Indeed, the area around $17,500 aligns with the December 5 high. If the price of bitcoin (BTC) touches this level, it may form a pattern “ shoulder-head-shoulder “, but not only. The return of the price to this area would potentially be a “ pull back on the trend line. With all these bearish signals, one could see bitcoin descending below $15,450.
However, if the price breaks through this critical $17,500 hurdle, the next resistance is found at $18,000. The breakout of this level would likely signify a bullish rally in bitcoin (BTC) towards $20,000.
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