Bitcoin rebounds to $18K after crucial support level holds — What’s next?

Bitcoin (BTC) has seen a tremendous run, particularly since September, with BTC price surging from $10,500 to $18,400 — a rally of 75% in less than three months.

What’s more, since March, BTC/USD has gained almost 400%, making it the best-performing asset of 2020 and likely catching many investors completely by surprise.

Let’s take a look at the charts to see whether the current rally is sustainable and if a reversal should be expected in the near term. 

Bitcoin hits 1.618 Fibonacci and may find a top soon

BTC/USDT 1-week chart. Source: TradingView

The weekly chart of Bitcoin shows a massive run in the previous period as the region around the all-time high is being tapped.

A clear resistance zone is marked around this all-time high and, thus, may serve as a trigger for investors to take some profits off the table.

More importantly, however, is that the 1.618 Fibonacci extension was also reached. The Fibonacci tool is a powerful indicator to mark potential tops and bottoms and the 1.618 level is arguably the most substantial.