Bitcoin price is approaching the final major hurdle before $ 20,000

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While the US election is still tied, Bitcoin (BTC) is seeing a big rally as BTC price hit nearly $ 16,000 today, its highest level since January 2018.

Other asset classes have also done well, such as Nasdaq, which has gained more than 7% in the past few days. In the cryptocurrency markets, Ether (ETH) also started rising from $ 445.

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The final weekly hurdle before a new all-time high is near

BTC / USDT 1-week chart. Source: TradingView

Bitcoin’s weekly chart shows the final hurdle before the new all-time high can be reached as it faces the resistance zone between $ 15,800 and $ 16,800.

The likelihood of a breakthrough all at once is not high as the price of Bitcoin has already risen by more than 50% in the past few weeks.

With the rally now potentially overstretched, as several indicators suggest, further continuation is unlikely. In other words, after such a big rally, traders are likely to take some quick profits in a short time.

Therefore, the most likely zone of support based on the weekly chart is in the $ 11,600 to $ 12,000 range. This zone has been a critical resistance to breakthrough in the past few years as the price of Bitcoin has been consistently declined in this area. A change in support / resistance in this area would be relatively healthy.

Fear and greed reach levels never seen before

The Fear and Greed Index is currently showing a value of 90 which is classified as extreme greed and warns traders that a correction should come as no surprise.

Historical index of crypto fear and greed. Source: Alternative.me

The last time that sentiment was reached was in the summer of 2019. This rally went from $ 3,200 to $ 13,800 and ended in a correction of more than 50% in the months that followed.

Total market cap attempting to continue the breakout

Cryptocurrency with total market capitalization 1-week chart. Source: TradingView

The total market cap for cryptocurrencies is showing a significant breakout above the recent high of $ 390 billion.

This breakout is likely to continue to rebound towards $ 500 billion – the next area of ​​resistance on this chart. However, to sustain such a rally, the total market cap of cryptocurrencies needs to be above $ 390 billion as that would potentially result in a bullish support / resistance flip for more upside potential.