Why traders say $13,875 will be the next ‘logical’ Bitcoin price resistance

The price of Bitcoin (BTC) has surpassed $13,745 and is now en-route to the next major resistance level. Traders have suggested that $13,875 is the nex key short-term area for BTC for two major reasons.

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

Second, technical analysts say that the weekly candle chart of Bitcoin shows $13,875 as the next “logical resistance.”

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

Should investors expect a major pullback near the $14K level?

In the past several days, calls for a major Bitcoin pullback have increased as the market sentiment turned euphoric.

Historically, even 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 last time BTC tested that level 16 months ago, it saw a massive price drop in a short period.

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

This time, traders do not anticipate a deep rejection but a strong reaction is expected from BTC and the wider market. Morra said:

“On high time frame chart this weekly level ~$13,875 is next logical resistance. It rejected 2019 rally pretty hard, second test will be less violent but I believe there will be a reaction. Taking out that ’19 high into weekly supply is one to watch for.”

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

For buyers, the ideal scenario for Bitcoin would be to rise above $13,875 and remain stable above it. Such a pattern would indicate a healthy reclaiming of a multi-year resistance level, which is very…

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