13 Jun 2022
Bitcoin trades dangerously close to its 2017 peak
Bitcoin is close to revisiting the 2017 cycle high of $19,900 after a ravaging sell-off.
$20,000 is a critical technical level for bitcoin, as it marks the peak of the late 2017 bull run.Throughout its history, bitcoin has never traded below previous cycle peaks, and a potential visit below this level could lead to a lot of hodlers capitulating and a wind-down of leverage, making this a very important support level to pay attention to onwards.In addition to being an important technical and psychological level, most of the open interest in bitcoin options is based on the $20k strike, which can contribute to selling pressure in the spot market should the price fall below.If the important $20,000 support breaks, BTC has support at $16,000 from the 17-18 relief range and the 2020 breakout. Further support could be found at $14,000 from the summer rally of 2019.Towards the upside, the closest resistance of meaningful strength is at $29k, with minor resistance at $25,000. A new consolidation range in this area might appear if the market settles following the important FOMC meeting on Wednesday.