Bitcoin Must Break $16,200 To Continue The Rally – Or It Could Soon End

Bitcoin has started to punch higher once again after an extensive bout of concentration under $16,000. The prominent cryptocurrency currently trades for $16,150, up 3% in the past 24 hours alone. Bitcoin has started to outpace altcoins once more, with most digital assets reporting losses versus the U.S. dollar today.

At $16,150, Bitcoin is somewhat below the local highs at $16,225, which the cryptocurrency has touched twice over the past few hours. Critics think that the cryptocurrency must realize that technical resistance if it is to establish the case for a further rally. The analysis reveals that the level is one of historical significance.

Bitcoin Must Break $16,200

Analysts say that Bitcoin must firmly break past $16,200 to establish its newest leg above. One crypto-asset analyst shared the chart seen below on November 12th, seeing that $16,220 continues a level of interest for him because it is the “weekly rejection block.“

Gazing back at Bitcoin’s history, the cryptocurrency was rejected at that level on at least two separate occasions in late 2017.

For Bitcoin to validate its ongoing rally, it should turn that level into support in the coming days.

Chart of BTC’s performance over the past few days with analysis by crypto trader C2M

The Rally Could Soon End

Not everyone is convinced that Bitcoin moves higher from here. Many are uncertain about the future of markets as, despite the vaccine, there remains much uncertainty in the short to medium term:

“As euphoria sweeps CT, the pandemic’s second wave is sweeping the world. Will Fed intervention keep everything afloat? Probably. But pandemic + weekly resistance = reduce the risk for me. As said, I sold off some spot #Bitcoin at $15750. Today, some $ETH at $472. Also please do not interpret this as selling my bags. I still hold spot $BTC, still hold spot $ETH. All I’m doing is taking some profits during an extremely strong rally. With a new pandemic wave right around the corner and no stimulus in sight, I want some dry powder in the case.”

Chart of ETH’s price action over the past few years with a macro analysis by crypto trader Chase_NL on Twitter.

There are also concerns that the Bitcoin rally is overheated, primarily because now a majority of investors are in profit. This may result in profit-taking that results in a correction.