The lead crypto Bitcoin (BTC) has powered to a new yearly high against the US dollar, with the pair finally reaching highs of $20,907 since inception. At present BTC has recorded its best year since 2017 despite the massive plunge to a multi-year low of $3,800 in March 2020. After stalling its decline around $17,580, at last, BTC/USD attains an upside breakout past $20,000. Buyers at all costs have limited selling pressure at $20,000 preventing trading levels under this zone. The Bitcoin (BTC) market cap is currently $383 billion, with $38.58 billion traded in the past 24 hours. BTC/USD hit the $20,907 all-time high on Wednesday and retreated to $20,718 by the time of writing. BTC has gained nearly 7% on a day-to-day basis, moving within a strong bullish trend. The cryptocurrency sphere is awaiting congress to pass a $748 Billion stimulus and spending bill that might boost Bitcoin prices. BTC/USD received a boost on Wednesday over growing optimism that Republican and Democrat politicians are going to agree on the new stimulus package.
*After stalling its decline around $17,580, at last, BTC/USD attains upside breakout past $20,000
*Buyers at all costs have limited selling pressure at $20,000 preventing trading levels under this zone
*The cryptocurrency sphere is awaiting congress to pass a $748 Billion stimulus and spending bill that might boost the Bitcoin prices
BTC/USD Daily ChartThe BTC/USD pair is consolidating at three-year highs and poised to extend its rally towards new levels not reached before now. BTC/USD is currently trading at $20,718 and up by 7% having traveled from a low of $19,300 to a high of $20,907. A close below $20,000 will likely invalidate the bullish formation and bottoming pattern and lead to higher lows, supporting the BTC higher.
However, on a break below the support at $20,500 the price target and confluence of the daily correction would be highly compelling. A meaningful retracement may come in at $20,000 and can be expected considering how stretched the bullish impulse has been without any significant correction.
BTC/USD 4-Hour ChartTechnical analysis shows that a breakout above the $21,000 level could see the BTC/USD pair rallying to a fresh all-time high. To the downside, weakness below the $20,500 level could cause a major technical sell-off towards the $20,000 level. From a technical perspective, the above scenario cannot be brushed aside in the 4-hour chart since the RSI is in the overbought territory.
Only sustained failure beneath the $20,500 level could prompt the BTC/USD pair to fall back towards the $20,000 area. The BTC/USD pair is only bullish while trading above the $20,000 level, key resistance is found at the $21,000 and the $21,500 levels. If the BTC/USD pair trades below the $20,500 level, sellers may test the $20,000 and $19,500 levels.
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