Bitcoin price bulls are relentless in the fight for a breakout above $12,000.
Delay in the price action above $12,000 could be the optimum condition to set the bearish pennant reversal action in motion.
Bitcoin price has kept investors on their toes for almost three weeks now. After breaking out of a narrow range between $9,000 and $9,300 mid-July, the largest cryptocurrency resumed an uptrend and for the first time in several months traded above $10,000. BTC/USD went ahead to print the most bullish scenario in 2020, breaking out above the resistance at $12,000 to form new yearly highs at $12,142.
As expected in all bullish markets, a reversal occurred almost immediately, allow ing BTC to confirm the support at $10,400. Recovery has been building momentum gradually this week with Bitcoin making it above $11,000. Moreover, buyers have shown resilience as they outperformed the bears to draw the price closer to $12,000.
At the time of writing, Bitcoin is trading at $10,850 amid a continuing bullish momentum. All eyes in the short term are glued on breaking above the resistance at $12,000. Unfortunately, Bitcoin is not seeing enough volumes for a rapid breakout.
BTC/USD 4-hour chart
Technically, the price is mainly in the hands of the bulls as shown by the RSI’s position at 63.85 and the MACD’s 122.24. Although the RSI has not been able to re-enter the overbought region since August 2, it has recovered substantially from the dip to 45. Similarly, the MACD shows that gains are likely to continue in the near term with its bullish divergence at 154.22.
The still-forming bearish pennant pattern suggests that if Bitcoin continues to delay the breakout above $12,000, a breakdown below $11,000 and towards the main support at $10,400 could come into the picture. Therefore, it is essential the price action above $12,000 materializes as soon as possible.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com