Bitcoin reached $13,250 this week, its highest price since mid-2019 and the strongest performance the cryptocurrency has posted in 2020. The jump from $12,300 caught many traders off guard as the rall
Bitcoin reached $13,250 this week, its highest price since mid-2019 and the strongest performance the cryptocurrency has posted in 2020. The jump from $12,300 caught many traders off guard as the rally built through earlier trading sessions. PayPal's decision to let 386 million users purchase Bitcoin directly on its platform drove much of the week's buying pressure.
The ascent produced significant gains: 12.4% for the week, more than 20% for the month, and 79% year to date. Bitcoin has held above the $10,000 mark for 88 consecutive days. The last time the cryptocurrency traded above $13,000 was July 2019.
The climb to new levels encountered fierce volatility. From the peak at $13,250, sellers pushed hard and drove the price down to $12,600. Buyers stepped in to defend those levels and pushed the price back above $12,800. Three price points dominated the trading action: $12,500 represented the first major resistance for buyers to break through, $12,700 shifted from being resistance overhead to a support level, and $12,650 became the critical support zone traders needed to defend.
Breaking above the 100-hour moving average on the hourly chart proved to be the key technical breakthrough. Prices rallied through that level and moved toward the $13,250 high. But sellers made a move. A sharp selloff wiped more than $600 from the price, dropping it to $12,600 before buyers stepped back in and stabilized support above $12,800.
At the time of writing, Bitcoin was trading above the 50% Fibonacci retracement level along a trend line, with critical support holding at $12,650. Any break below $12,600 would expose the next support floor near $11,900, where the 100-hour moving average also sits to provide backstop.
For the upside to continue, buyers will need to clear $13,000 and retest the $13,250 level. If that breaks, the next target becomes $13,650. Clear that resistance and traders will look toward $14,000. The daily MACD is trending upward, pointing to building bullish momentum. The RSI remains in positive territory despite minimal movement. As long as the $12,600 support level holds, buyers maintain their advantage.
