Bitcoin bulls may look tired, but they are continually knocking at the $12,000 level. Bitcoin price has been posting lower highs for the past 3-4 days and flirting with 0.786 Fibonacci level, which stands at $11,743. The increasing volatility and the exit of approximately $4 billion from the market in a matter of a few hours may also hint at profit-taking.
Bitcoin price heatmap – by Coin360
Even though it may look like that this bull run is running out of steam, the lower highs pattern is a sign that bulls are using the dips to buy more of BTC/USD pair. On the daily charts, the macro factors are very much in play still. The whale manipulation pattern is also complete. Subsequently, a sideways pattern has emerged, which shows a struggle between the bulls and the bears.
Crucial support still holding at $10,500
If the Bitcoin price rests around the 0.786 Fib level for a considerable period, it could mean that the price is consolidating before its next move higher. For this to happen, the bulls must maintain a consistent buying in the short-term. Plus, they must also preserve the BTC/USD price from falling below the crucial support at $10,500 level.
Bitcoin price chart by TradingView
Technically, a confident daily close above the $12,000 mark would ensure that the Bitcoin price is set for further takeoff. On the contrary, if the bears take charge, the first line of defense would be the support at $11,175. The next 0.382 fib marks the next support and can attract more buying interest from the bulls.
Understanding the Technicals behind Bitcoin price movements
The hourly chart is once against turning bullish. The 4-hour chart is witnessing many bullish signs simultaneously. The MACD, parabolic SAR, RSI, and even the volume are showing a bullish response. The short-term trend is shifting towards a positive note.
Bitcoin price chart by TradingView
As trader Alan Masters points out that price can hover around EMA 10 or 50-day lines. An increase in the buying volume can be a trigger for the bulls to take part in the next rally. Moving averages are sloping upwards. RSI has a fair amount of room up top and can accommodate another rally in the short term.
Bears will get active beyond the $12,500 zone and would aggressively arrest any Bitcoin price movement above the $13,000 mark. If Bitcoin price breaches $14,000 in the next few days, the pair may experience intense selling pressure.
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.
