Bitcoin climbed in the year's opening weeks, but a sharp correction arrived in late February when COVID-19 swept through Europe and North America. The decline that followed spread through March and in
Bitcoin climbed in the year's opening weeks, but a sharp correction arrived in late February when COVID-19 swept through Europe and North America. The decline that followed spread through March and into the spring. Since then, recovery over the past couple of months has caught many by surprise. Analysts figure that without the pandemic, Bitcoin would have reached $11,500 by April.
This week, the price surpassed the $11,507 barrier set in July and August 2019. The path to last year's peak of $13,957 runs through the 0.786 Fibonacci retracement at $11,820. Traders who clear that level expect Bitcoin could reach $14,000 within weeks.
On daily charts, Bitcoin is pushing higher, moving past the weekly resistance of $11.762 and testing the daily barrier at $11,862. The daily level and the 0.786 Fibonacci point nearly align, making the $11,800 zone critical for what happens next. If the uptrend holds and Bitcoin remains above its trend line support, the next major resistance doesn't come until the all-time high. From a technical standpoint, no barrier sits between the current price and that former peak.
The broader market context supports the move. Riskier assets across global stock markets are recovering. As investors move back into higher-risk positions, Bitcoin stands to benefit from capital flowing into alternatives to traditional holdings.
Traders who apply the extended Fibonacci sequence from top to bottom see a 1.618 level at $20,128, though making forecasts that far out seems premature at this stage.
Bitcoin holders watch and wait. For active traders, this moment matters. August will likely clarify whether the cryptocurrency can mount a substantial climb. With no meaningful technical obstacle between the daily level of $11,862 and the all-time high, the chart demands close attention now. Breaking past these levels puts $14,000 within reach before the year closes.
Konstantin Anissimov, Executive Director at CEX.IO, contributed this analysis. CEX.IO operates as a multi-platform exchange offering diverse crypto assets, an integrated mobile application, and service in numerous countries including 43 US states.
