Bitcoin price must break this level to extend 6-week winning streak

Bitcoin price has been showing significant strength as Bitcoin (BTC) rallied by more than 60% in a matter of six weeks, surging from $10,000 to $16,500 and leaving many investors behind.

These investors were waiting for the close of the CME gap at $9,600, which didn’t occur. However, can the markets expect a correction to happen, or is further strength likely for the markets?

Bitcoin posts sixth consecutive green weekly candle

The daily chart shows some crucial levels to watch. If Bitcoin’s price wants to continue its upward momentum, the previous resistance zone has to flip for support.

A similar example is shown through the previous breakout at $13,200. This area acted as resistance before the breakout but immediately flipped to become new support. This support/resistance flip warranted further continuation to $16,500.

The $15,500–$15,700 area implies the same critical construction as the previous $13,200 area. Holding the $15,500–$15,700 area means further upward continuation is likely, while a breakdown confirms the bearish divergence that should push the price down. This downward move may even see BTC drop to the $14,000 level.

A correction to $12,000 is still on the table

The weekly time frame shows a precise resistance level at $12,000, which was broken six weeks ago. The next massive resistance zone is found between $15,750 and $16,500, which was hit last week.

However, is a continuation likely after such a massive surge? One argument is that there are still many untested levels beneath the current spot price where liquidity can be found.

Moreover, the sentiment has flipped from bearish to euphorically bullish as more institutions jump on the Bitcoin bandwagon, so a pullback shouldn’t come as a surprise.

As the chart shows, a correction toward $12,000 could still occur, which used to be a critical level. This level broke after holding for two years. However, a retest of this zone didn’t occur.

Investors and traders should watch this level as a potential entry of interest.

Fear & Greed Index says the market is overheated

The Crypto Fear & Greed Index measures different variables to gauge current market sentiment, which is still 90 out of 100. This level is qualified as “extreme greed.”

This level was only reached once before. This previous one marked the top of the bull run in June 2019.