Can Bitcoin price conquer $16,000 as 'extreme greed' grips market?

The weekly chart for Bitcoin shows an apparent resistance zone in the $16,000 region.

It's the first time in nearly three years that this level was reached.

Many levels beneath the current price are untested on the weekly timeframe.

A healthy way to build up a new cycle is backtesting of previous resistance levels as new areas of support.

The current breakout lacks volume setting up a potential bearish divergence and a top construction at this level.

If a further correction occurs, the levels to watch on the daily timeframe are $14,100, $13,100, and the zone around $11,600-12,000.

The Fear & Greed Index is still at extremely high levels, as the current level is 87 out of 100, the highest since June 2019, which marked the top of the previous bull cycle.

While institutions jumping into Bitcoin or big-name investors stating that they own BTC is a very bullish signal for the market in general, this doesn't mean that a correction can't occur.

Such bull cycle corrections are often considered healthy for the Bitcoin market.

In the previous bull market cycle in 2017, BTC/USD saw multiple drops of 30% that resulted in retests of previous resistance levels, which then became springboards for the next leg up.