Bitcoin Price May Hit $17,000 If It Surpasses This Resistance Level

As Bitcoin maintains its momentum above $11,000, analysts are hopeful that the bullish trend will be sustained. If the benchmark cryptocurrency manages to break past $12,000 and sustain it, Bitcoin may be on its way to hit $17,000 for the first time since 2018, they say.

Bitcoin opened Monday at $11,374 and went as high as $11,736 before closing at $11,535 on Coinbase. This was the sixth green candlestick in a row for the benchmark cryptocurrency, after staying within the $10,000 level last month. It was also Bitcoin's highest closing price since Sept. 2.

Analysts and traders are plotting possible scenarios for Bitcoin in the short-term. In the first scenario, Bitcoin will stay within the $11,000 range for consolidation. This is exactly just as how it did when it was staying within $9,000 in June and within $10,000 in September.

According to Cointelegraph, the current chart setup is similar to what was observed in 2015 and 2016, when previous resistance levels became support levels one by one. The critical level at the moment is $12,000. "As the current construction is similar to the movements in 2016, a breakout could take a while to occur," the report said. The levels within $12,000-$12,400 are major resistance areas representing the point where Bitcoin found its 2020 high.

However, should Bitcoin hit $12,000 and manage to sustain a breakout above that level, the bullish move could take Bitcoin back to $17,000, said analyst Michael van de Poppe. "The area around $17,000 is the next central pivot, and final hurdle before new all-time highs can occur," the analyst said.

The Cointelegraph analysis shows the crucial level to hold is between $10,500 and $11,000 with the initial support level still at the $9,900 range.

Apart from technical indicators, Bitcoin's fundamentals are also getting stronger. Bitcoin dropped last week following news of the indictment of BitMEX owners and also when President Donald Trump tested positive for coronavirus. "Then coupled with the Square news, it indicated that the current valuations are attractive and helped push the price above $11k," Joe DiPasquale, CEO of BitBull Capital, a cryptocurrency hedge fund management firm, told Forbes, referring to Square's recent $50 million investment in Bitcoin.

He cited the resurgence of COVID-19 in Europe and the U.S. and also news about the 2020 presidential elections as catalysts for Bitcoin turning a good store of value in times of economic uncertainty.