Bitcoin (BTC) price had been acting inside a narrow range for the last few weeks but the momentum and trend shifted as a bullish breakout occurred on the announcement that Square had allocated 1% of its cash reserves to BTC.
This bullish breakout even caused the price to rally from $10,600 to $11,500, which is almost $1,000 in a few days.
Despite this strong upside move, traders are still cautious as they are unsure whether the bullish momentum is back or if this is just a temporary blip.
Bitcoin faces crucial resistance overhead
BTC/USD 1-day chart. Source: TradingView
The daily chart of Bitcoin is showing a clear upward move toward the upper range resistance. The critical factor to watch is whether the $12,000-$12,400 resistance zone breaks as that would imply another impulse wave is on the horizon.
While most investors were expecting further movement to the downside, the complete opposite happened. In the past week several negative news