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Bitcoin (BTC) Rebounds From Key Support, Leading to a Possible Surge to 16,500 USD?

November 16, 2020

Talking Points:

BTC’s price is hovering around 16,000 USD following a reversal from the 50-day simple moving average (SMA) support.

BTC/USD bullish move towards 20,000 USD needs BTC to climb over 16,500 and 17,000 USD as fear of missing out (FOMO) will support the rest of the path upwards.

BTC has recovered its position over 16,000 USD after seeing a supporting weekend. The major cryptocurrency saw a new yearly high of 16,500 USD last week but quickly saw a rebound. The bearish sentiment saw BTC explore levels below 16,000 USD. However, the bearish move was not left to cause major damage to the progress made, with BTC/USD rebounding off support just over the 50 SMA.

At present, BTC is hovering around 16,000 USD in the midst of a renewed bullish sentiment at the start of the Asian session today. The Relative Strength Index (RSI) offers support to the bullish direction with its recovery over the midline. If the indicator continues heading towards the overbought, more buyers will be motivated to join the party and maybe create enough volume for a rise over and above 16,000 USD.

BTC/USD 4-Hour Price Chart:

Currently, the route with the least resistance seems to be towards the upside in part due to the strong support for BTC. As the volume increases, the BTC price will probably continue with the upward run towards 16,500 USD. Trading over 16,500 USD will open the door to 17,000 USD while the rest of the journey towards 20,000 USD will ride on the FOMO.

Apart from the 50 SMA in the 4-hour chart, the major cryptocurrency will look for shelter at 15,000 USD (100 SMA) in the event of a reversal. Other vital support levels are 14,500 USD, the 200 SMA and 13,500 USD.

For now, defending the position at 16,000 USD is vital to the eagerly awaited breakout towards 16,500 USD. Then again, a price action below the short-term support could trigger a fall towards 15,000 USD.

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