Bitcoin price is currently down nearly $400 from yesterday’s highs in a flash, after coming close once again to the $12,000 resistance level. According to a crypto analyst referencing on-chain analytics, once $12,000 is broken through cleanly by bulls, there’s “clear skies” above that until $16,500 – which they claim is just a minor “speed bump.”
Technical analysis also demonstrates just how critical $12,000 has been to Bitcoin and its ongoing bear market, and why it may remain the key to fully unlocking the power of the next bull run.
On-Chain Volume Analysis Shows “Clear Skies” For Bitcoin Above $12,000
At this point, $10,000 feels like an afterthought, and now the leading cryptocurrency by market cap faces $12,000 as the de facto resistance level to break.
$12,400 is the current 2020 high, but after Bitcoin has now spent its longest stretch above $10,000 in its history, and fundamental health improves by the day, it is only a matter of time until $12,000 is taken out as well.
Bitcoin On-Chain Analysis Shows $12,000 Significance | Source: Byzantine General Via Twitter
When that happens, according to a top crypto analyst sharing an on-chain volume profile analysis, it is “clear skies” for Bitcoin. Aside from a small “speed bump” at $16,500, new all-time highs and a return to price discovery could be next.
But it all depends on this key level, which is clearly the most dominant level left on the on-chain volume analysis profile shared by the analyst. The current cluster is what is keeping Bitcoin trading sideways, and the only other comparable volume clusters lie below at $3,200 or lower.
Technicals Highlight How Critical $12K Is To The Cryptocurrency’s Bull Breakout
$12,000 is also the technical level to beat, matching the on-chain volume profile analysis above. Bitcoin only traded two weeks of 2018 above $12,000, then has never closed a weekly candle above that level, not even in 2020.
BTCUSD Weekly $12,000 Resistance Level Technical Analysis | Source: TradingView
When that does happen, the next logical target is a retest of the 2019 high at $13,800, and beyond that, is the “speed bump” on-chain analysis shows that could cause a short-lived pause in any uptrend.
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$12,000 is the line separating Bitcoin from a bear or bull market. Beyond that level, however, as the trader says, its clear skies for the crypto asset, and likely new all-time highs set each new passing month until the next peak is in.
Featured image from Deposit Photos, Charts from TradingView
Source: Bitcoinist News