Bitcoin bulls take down the resistance at $12,084 and $12,145 to trade a new yearly high at $12,492.
BTC/USD slowed down price action suggests that consolidation will follow ahead of a breakout to $13,000.
Bitcoin finally made the last stroke above $12,000 on Monday ascending to a new yearly high at $12,492 (on Coinbase). The majestic price action comes after BTC/USD stalled under $12,000 for more than two weeks. Moreover, the crypto has explored the levels above $12,000 twice in August but both times, the trend culminated in losses into the $11,000’s range. The losses refreshed levels closer to $11,000 where support at $11,100 was embraced before a recovery ensued towards the end of last week.
At the moment, BTC is teetering at $12,371 following a shallow bullish reversal from $12,218. Bulls seem to be still in control of the price action. The next target on the upside is to overcome the resistance at $12,500, which will aid in shifting the attention back to $13,000.
Looking at the technical levels, Bitcoin is poised for more upward action. For instance, the Moving Average Convergence Divergence (MACD) at 96 has already corrected the dip marginally under the mean line during last week’s trading. A bullish divergence (50.50) above the MACD vividly shows that bulls are in the driver seat.
The Relative Strength Index (RSI), on the other hand, has slowed down the retreat from the overbought region. It currently holds the position at 67.92 and is in favor of a horizontal movement. In other words, consolidation is likely to take place in the near term before buyers stage the attack on $12,500. In the event of a reversal, losses would be mitigated at $12,200, $12,100 and the former resistance at $12,000.
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