Bitcoin price is repeatedly testing the $12,000 crucial resistance for the past few days. Unfortunately, it is regularly rejected at higher levels, and the recent $700 price drop is making the bulls nervous. Even though the price is well supported underneath at $10,500, the Bitcoin price has to close above $12,000 to infuse confidence into the bulls.
Bitcoin price must end consolidation to move higher
In the past two days, traditional markets have been giving consolidative signals. Gold and silver have also corrected a little bit. The same trend is reflecting itself in the crypto market. The Bitcoin price touched $11,000 on August 11 signalling a minor correction due to profit booking.
Is bullish momentum getting crushed?
Any violent move downwards along with massive volume, would mean that bullish momentum is under danger. However, broader crypto market, including DeFi, doesn’t suggest any such move is imminent. Bitcoin price quickly secured $11,200 and is now trading above this level signalling that bulls are well in control.
Bulls must build further momentum for the next leg of the rally to start. In case Bitcoin price slips below $11,100, it can spark a quick downward rally to touch $10,000 level and test these support levels. Next support downward stands at $9,700 mark that is also the CME gap. A market in bearish grip is known to test open gaps before making an upward move. Bears need to be cautious if BTC/USD price moves to $9,700 as there won’t be much downward movement available.
The bearish downtrend may also test 100-day moving average since this level would be the next logical support level. Bulls looking to reconcile higher must look at 100-day and 200-day moving averages.
Short term technical indicators hold the key to Bitcoin price movement
In the short term, bulls must look towards $12,500 resistance level. As the price is hinting at lower highs, it could indicate a loosening bull grip which in turn could trigger a downward movement. RSI is hovering at 60, which means there’s a fair amount of room upwards. Bollinger bands are neutral so far and haven’t given any stretch signal.
As trader Alan Master points out that bulls are looking indecisive as price moves sideways with lower highs. If bulls are able to take out $12,000 resistance level, a long-term massive bull rally will come into play that will open up $15,000 level.
Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan.com holds no liability towards any investments based on the information provided on this page.