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Bitcoin repeats August performance, speeds past $12k

Photo of: Dennis Ramos
by Dennis Ramos

Bitcoin seems to be in high spirits (not literally though!) because BTC has broken out from the $12,050 resistance area and is trading within a longer-term resistance level. Yesterday, Bitcoin moved to an important resistance area marking a bullish sign for it. And now, if things have to remain bullish as they are now, a daily close of $12,050 and a weekly close above the current level will be the ushering in of a positive signal of future bullish rallies. 

Two days ago, the Bitcoin price generated a bullish candlestick moving past the previous high at $11,600. This price increase trend is set to continue as it will create another bullish candlestick till now touching a daily high of $12,313. Now what has to be observed is if it closes also at the current levels then it surely will breakout above $12,050. If it breaks out above this level which has acted as a resistance for a long time, it is a sign of a major bullish run. 

Source: Trading view

There is an increase but the price is trading at an important and significant long-term resistance which is at $12,250. Bitcoin was not able to reach or sped past a close above this level since 2018 January. Adding to this, it also stands concurrent with a descending resistance line drawn with reference to the highs in July. Both RSI and MACD also have created bearish branching out and forking. But as per the scenario, irrespective of the fact that price breaks or gets outrightly rejected from the current level, it surely will have a major impact on its future. If it closes weekly above $12,250 then we should be bullish about it. 

Taking a look at the 6-hour chart, it does not indicate any pattern per se. Even if the RSI seems to be purchased above the threshold as of now there has been no generation of bearish divergence. On a similar note, MACD is also moving upwards with the closest support area back at $11,200. 

Even in the two-hour chart, there seems to be no weakness. If we observe carefully the RSI was almost about to generate bearish divergence but it moved upwards de-validating those attempts. MACD also has moved upwards. In this case, the closest resistance turnaround took place at $11,700 which actually coincides with the ascending support line which was observed from the October 16th bottom. Now when the price is trading and running smoothly above this level, then the plausibility for continuation also remains on the higher side. 

So, practically speaking, if we observe these trends, we can clearly see that the Bitcoin rally has extended over and beyond. But what needs to be remembered is that as long as the price is trading above $11,700 levels, as well as above the ascending support line, the trends are stated to be bullish and healthy for Bitcoin.