Well we are here finally! After 140 days of frustration and demoralizing claims for $1000 $500 or even $0, Bitcoin is finally testing the 1W Resistance. The Resistance which before the November sell-off, has been sustaining Bitcoin as a Support above the 5800 level.
How important that test is? Well it's vital. Two reasons:
Firstly because it meets with the MA50 which alone acts as a Resistance (we have discussed this extensively in previous analyses, I will not get into much detail).
Secondly because during the previous cycle in 2015, when the price tested the 1W Resistance, it was rejected (not once but twice) towards the MA200 which acted as a Support (again won't get into much detail as it ihas been also discussed).
I expect a similar behavior as this Resistance should act as a profit taking point for retailers who bought at the bottom.
Notice how the Ichimoku Cloud shows us where the price is headed next. Crossing its channel practically means the breaking of the 1W Resistance. In 2015 this happened in the middle of the Cloud and both the Resistance and the MA50 turned into the support that sustained the new bullish cycle. Where every low is a Higher Low and every high is a Higher High, until the mega bullish break-out of the next Halving.
We are finally here people!
But what do you think? Do you also believe that we have this one last barrier left, in the form of a slight pull back, or we are heading straight 7000 or even 8000? Let me know in the comments section!
The breakdown is coming, if you ask me