Bitcoin closed the week at $15,975 after a volatile stretch that saw the price reach $16,494 before tumbling to $14,824 and recovering as sellers defended the $16K level. The resulting candle ranks as
Bitcoin closed the week at $15,975 after a volatile stretch that saw the price reach $16,494 before tumbling to $14,824 and recovering as sellers defended the $16K level. The resulting candle ranks as the third-highest weekly close on record, capping six consecutive weeks of gains. Bitcoin hadn't closed at $15,975 since the first week of January 2018.
The $16,494 peak set a new high for 2020. The rally unfolded amid mounting institutional interest. PayPal said it would allow US customers to buy, hold, and sell bitcoin. A Chinese bank issued $3 billion in bonds tied to bitcoin. Stanley Druckenmiller, a major investor, made public remarks favoring Bitcoin over gold as a store of value.
The week's close sits within striking distance of the $16,124 level from early January 2018. Breaking through would mark Bitcoin's highest weekly close since December 2017. The pattern of six consecutive green candles signals sustained accumulation pressure.
The daily chart shows bulls maintaining the 10-day exponential moving average support at $15,696, a level they've held since early October. Bitcoin trades well above the 50-day simple moving average at $12,902. The Relative Strength Index sits in overbought territory without reaching extreme levels. These readings give bulls the edge, capable of pushing through $16K to test resistance near $16,500. Should buy-side pressure hold above this barrier, the next target opens at the $17,000 psychological level. Sellers mount a stronger challenge around $17,200.
A break below the 10-day EMA would shift momentum toward bears aiming for $14,800 and $14,000 in support. Losing this moving average support is the critical threshold bulls must defend.
The 4-hour chart presents a different picture. Bitcoin sits below the 10-EMA at $15,990, and the moving average's flattening signals momentum loss. The RSI shows a bearish divergence hovering above 50. This setup puts resistance at $16K. The 50-SMA sits at $15,710 and would provide immediate support if selling accelerates. Lower targets sit at $14,800, $14,400, and $14,000.
Bitcoin traded near $15,977 at the time of writing.
