The toll of Bitcoin (BTC) has surpassed $thirteen,745 and is now en-road to the next major resistance level. Traders accept suggested that $13,875 is the nex key brusque-term expanse for BTC for 2 major reasons.

First, Bitcoin peaked at $13,970 on Jun. 26, 2019. Technically, the previous peak achieved more than than a year ago still serves as an of import area for sellers.

2nd, technical analysts say that the weekly candle chart of Bitcoin shows $xiii,875 every bit the next "logical resistance."

The major factor will be how Bitcoin price responds to tapping the highly predictable resistance level and it is likely to pave its short-term performance until the end of 2020.

Should investors wait a major pullback about the $14K level?

In the past several days, calls for a major Bitcoin pullback accept increased every bit the market sentiment turned euphoric.

Historically, fifty-fifty amidst strong bull cycles, Bitcoin saw healthy corrections that further strengthened its uptrend.

Edward Morra, a popular cryptocurrency trader, said he expects a reaction from the market at $13,875. The final time BTC tested that level 16 months ago, it saw a massive price drop in a brusque catamenia.

BTC/USD weekly nautical chart. Source: TradingView.com, Edward Morra

This time, traders do non anticipate a deep rejection but a potent reaction is expected from BTC and the wider market place. Morra said:

"On loftier time frame chart this weekly level ~$13,875 is next logical resistance. Information technology rejected 2019 rally pretty hard, 2d test will exist less vehement only I believe there volition be a reaction. Taking out that 'xix high into weekly supply is one to watch for."

In the past week, Bitcoin has tested many key resistance levels in a curt span of time. Yet, it has breached the levels with ease, consolidating higher up each one, and demonstrating a stable rally.

For buyers, the ideal scenario for Bitcoin would be to rising above $13,875 and remain stable above information technology. Such a pattern would bespeak a salubrious reclaiming of a multi-year resistance level, which is very optimistic.

Boosted factors behind Bitcoin's momentum

There are ii fundamental and macro factors that could catalyze Bitcoin's momentum in the about term: decoupling and the dormant supply.

As Bitcoin investor James O'Beirne pointed out, BTC assuredly decoupled from the U.S. stock market in October.

Due to the lack of stimulus, the dubiousness surrounding the 2020 ballot, and the sharp rise in COVID-19 cases, the U.S. stock market has dropped steadily. At the same time, BTC has rallied strongly and the sentiment surrounding the digital nugget has improved significantly.

The dormant supply of Bitcoin. Source: CoinMetrics.io

According to CoinMetrics, the dormant supply of Bitcoin held for at least 1 year has hit an all-time loftier. The researchers said:

"The % of BTC supply held for at least one yr has never been higher. This is bullish for BTC, peculiarly because this metric historically peaked during periods where price was at local lows."

The confluence of positive fundamentals, macro, and technical factors, along with an optimistic high time frame technical structure, raise the probability of BTC testing $thirteen,875 without a massive corrective movement.