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The bitcoin price is now trading at just under $ 15,000, less than 24 hours after the resistance at $ 14,000 was broken. One of the top fundamental cryptocurrency experts says this is just the beginning now that “the train has left the station”.
Breaking the resistance at $ 14,000 could eventually cause the first-ever cryptocurrency to continue to gain momentum like a locomotive, and head for a new all-time high.
Cryptocurrency Expert Charles Edwards: Bitcoin Train “Left the Station”
In 2020 alone, Bitcoin went from a low of $ 3,800 on Black Thursday, to a current high of just under $ 15,000 in about nine months. However, that was only the first stop, according to Bitcoin expert Charles Edwards.
While $ 10,000 represented critical resistance for the cryptocurrency, $ 14,000 could finally be the nail in the coffin for the bear market. The bearish resistance block that Bitcoin has now cleared dates back to 2017, only a week or so after the crypto asset peaked at around $ 20,000.
The breakout through $14,000 has caused the train to leave the station | Source: BTCUSD on TradingView.com
Bitcoin broke above $ 14,000 yesterday and hit $ 15,000 in a flash, where it met another level of resistance. But “the train has already left the station,” according to Edwards, who believes the next bull market in the crypto asset is beginning.
Edwards knows his stuff, that’s right. He is the creator of some of the most effective health measurement tools on the network, including hash tapes, Bitcoin’s energy value, and the cost of production indicator on TradingView.
Recently, its hash tape tool signaled that miners were capitulating, however, it warned it wasn’t a sell signal. He was right, as Bitcoin has exploded further since then by well over 6% and is climbing.
Similar levels acted as the last stop before the bull run | Source: BTCUSD on TradingView.com
Why $ 14,000 was so critical to the bull run: adding up the math
As for why $ 14,000 was such a key level, and why Edwards says it was the last stop on the Bitcoin accumulation train before the bull market, it could all be math and mind.
The chart above shows how the same level acted as the last stop for Bitcoin’s price during the previous bear market before the bullish run began. But removing the resistance blocks and replacing them with Fibonacci retracement instead sheds some light on why resistance is so critical.
Each major resistance level also happened to be the 0.618 Fib level | Source: BTCUSD on TradingView.com
The level appears to be the 0.618 Fibonacci retracement level and a crucial level to watch for where reversals occur. It is not clear why this relationship exists, but when assets breach this line, the signal is likely to continue – which is exactly what Edwards suggests will happen and what Bitcoin is doing as this text is typed.
With the Fibonacci levels so clearly important, it might be worth paying close attention to the Fibonacci level of 19,618, which was the peak during 2017 – interesting enough – at around $ 19,618 on BitStamp.
Featured image from Deposit Photos, Charts from TradingView.com
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