Bitcoin price is currently holding above important weekly support. With just three days left for the weekly close, the next few days are critical. If the cryptocurrency can break through, $12,000, which one analyst claims won’t hold much longer, the next leg up could “overshoot” most targets and touch $15,000.
But although that outcome is positive for crypto investors, the overextended move would result in a pullback followed by weeks of consolidation around $14,000 before moving up again.
Holding Weekly Support Is Bullish For Bitcoin, “Sub-$12K” Won’t Hold Much Longer
Bitcoin is currently trading at potentially its most critical level yet. While $10,000 prevented the cryptocurrency from reaching former highs and acts as a trigger for crypto FOMO, $11,500 may have even more significance.
The number dates all the way back to December 2017 just after Bitcoin topped. Five days after the peak, the cryptocurrency touched down on the support level for the first time.
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The first-ever cryptocurrency spent all of January 2018 struggling to stay above the support, but it eventually gave out. Losing $11,500 took Bitcoin down by nearly 50% ten days later to $5,800 for the V-shaped February low.
Bitcoin bounced hard, back up to $11,500 where the former support was confirmed as resistance. Bitcoin never again closed a weekly candle above the key level, until the start of this past August, following a break of $10,000.
The leading crypto asset by market cap rocketed to $12,400 at the 2020 high so far but pulled back to $11,100 where bulls are attempting to confirm the resistance to support flip of $11,500. If it holds, resistance above $12,000 won’t keep Bitcoin at bay much longer, and it could send the asset higher to overshoot most expectations.
BTCUSD Weekly Support and Resistance Flip Retest In Progress | Source: TradingView
BTCUSD Target Could Overshoot To $15,000 Claims Vinny Lingham
The retest of an extremely important support and resistance flip is in progress, as can be clearly seen in the chart above. If BTCUSD holds this key level, Vinny Lingham, Bitcoin investor and head of the Civic cryptocurrency project says that the crypto asset will rocket toward $15,000.
The reason for the $15,000 targe, is because that is where the last positive, green weekly close took place prior to the top being set. The next candle after the top was a bearish engulfing taking out any chance of $15,000 acting as support.
It looks to me that #Bitcoin is poised for another leg up, with an overshoot above $15k, but then a retrace and heavy consolidation around $14k for a few weeks at least. I doubt this sub-$12k price holds for much longer and $10k represents strong support right now.
— Vinny Lingham (@VinnyLingham) August 28, 2020
Instead, the number is likely Bitcoin’s last major weekly resistance level before revisiting an all-time high. After a rise from $3,800 to $15,000 in a matter of months, the cryptocurrency would need a reset.
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Lingham expects the cryptocurrency to then consolidate around $14,000 before the next major move up. A deeper drop is also possible, he says, but it would likely get bought up quickly back to $14,000.
As for why Lingham’s call matters at all, the crypto entrepreneur in the past called for Bitcoin to break above $3,000 in 2017. What he didn’t expect was for the crypto asset to overshoot the target by so much, reaching as high as $20,000.
Lingham this time around has adjusted his expectations and added a buffer in case Bitcoin overshoots his targets yet again. But its possible, that just like last time around, Lingham underestimates the power of the crypto’s momentum, and Bitcoin explodes to a new all-time high.