The price of Bitcoin (BTC) is facing its final resistance zone until the bull market is on fire. However, will it break through this resistance zone in one attempt? The charts suggest that the $11,600-12,000 area is a crucial level to break if the price of BTC is to continue moving higher.
As the price of Bitcoin couldn’t break through that resistance zone, a slight drop occurred on Friday from $11,900 to $11,350, after which BTC has managed to pare most of the losses since.
Crypto market daily performance. Source: Coin360
Bitcoin faces resistance at $11,800-12,000
BTC/USD is still fighting at the resistance zone at $11,800-12,000. Unfortunately, no breakout just yet, while silver and gold have been showing more strength recently.
BTC/USD 1-day chart. Source: TradingView
The chart shows that there’s a clear resistance zone at $11,800-12,000. This is a significant level as it is the final untested level until Bitcoin enters open air.
If there’s a breakthrough in this resistance zone, Bitcoin’s price can easily run toward $15,000-16,000. Such a run would only increase the FOMO, or fear of missing out, in the markets.
However, such a run is currently unlikely, especially given the recent breakout at $10,000.
In other words, as Bitcoin’s price went vertical since $9,500 toward $12,000, a breakout above this resistance becomes less likely as there’s no buildup. If an asset wants to break through such a significant resistance, it usually tests the level multiple times before it breaks through.
For example, the consolidation period (similar to the months after the recent Bitcoin halving) resulted in the strength and momentum that finally pushed BTC/USD above $10,000. Nevertheless, a breakout above the resistance zone at $11,800-12,000 is not entirely out of the question.
Smaller timeframes did hold the $11,400 level and face resistance
As Bitcoin’s price dropped from $11,900 to $11,400 last Friday, the previous resistance zone at $11,400 was...