Bitcoin is currently caught within another bout of sideways trading as its price hovers within the upper-$11,000 region.
This trend comes close on the heels of the strong multi-week upswing that allowed it to climb from lows of $9,000 to highs of $12,100 that were set yesterday evening.
The lower-$12,000 region has been established as a strong resistance zone for the benchmark digital asset.
Last Saturday, BTC faced a harsh rejection at this level that led it to lows of $11,000. Yesterday, it faced yet another rejection at this level, although its price only dipped as low as $11,700.
One occurrence within the options market shows that the cryptocurrency’s mid-term outlook remains incredibly bright despite its inability to break $12,000.
If Bitcoin can push higher and eventually surmount $14,000, it’s open skies until it reaches its all-time highs of $20,000.
Options market places an 11% chance on Bitcoin reaching $20k by December of 2020
Bitcoin has been climbing higher ever since its price bottomed out at $3,800 in mid-March.
After rallying as high as $10,500 in May, it entered into a multi-month consolidation phase that would ultimately result in a breakout rally that led it up to its recent highs of $12,100 that were set yesterday evening.
Despite not being able to break above $12,000, the strength of Bitcoin’s multi-month uptrend doesn’t appear to be faltering.
The options market, however, still thinks the benchmark cryptocurrency will end the year below its all-time highs of $20,000.
According to data from analytics platform Skew, the current probability of BTC trading at, or above, $20,000 by the end of December is 11%.
While looking towards March of 2021, this probability jumps to nearly 15% but remains rather low.
Here’s the key level BTC needs to break to push significantly higher
While looking towards Bitcoin’s options market’s open interest by strike price, there is a significant gap between $14,000 and $20,000.
This suggests that the crypto may not face too much resistance within this price region, making a clean break above $14,000 vital for BTC to have a chance at setting fresh all-time highs in the coming few months.
Kyle Davies – co-founder of Three Arrows Capital – spoke about this in a recent tweet, saying:
“BTC air above $14k up to $20k.”
Watching Bitcoin’s reaction to $12,000 should provide some significant insights into the cryptocurrency’s macro trend.
Bitcoin, currently ranked #1 by market cap, is down 1.66% over the past 24 hours. BTC has a market cap of $217.59B with a 24 hour volume of $23.91B.