In the early hours of trading, the price of Bitcoin soared past $20,000 and kept on rising. The asset is attempting to break through the key resistance at $20,800 and seize the levels above $21,000 before the close of trading. Now that it has recovered from the demand zone, the price is anticipated to continue on an important upward trend.
Trading volume has increased significantly, which may sustain the bullish momentum. Although there has been a significant increase, the trend reversal is yet to be confirmed as BTC price is still moving in a bearish direction. Therefore, Michael van de Pope, a well-known analyst, marks some key levels that should be closely monitored till the end of the week.
The analyst thinks that the critical level needs to be attained at first at about $20,700, after which the next testable target could be at about $22,900. However, if the price doesn’t increase, it might experience a significant decline. The BTC price might need to remain at $20,000 in such an event. Additionally, the asset’s final line of defence may be between $19,300 and $19,500, after which it may revert to a bearish trap.
Bitcoin experienced a massive short liquidation during the early trading hours, pushing the price above $20,200. A day above the achieved levels would indicate a significant rebound when BTC price is trading close to these levels. However, the price may continue trading in a bearish trend until it crosses the crucial $22,500 resistance level.
