TA: Bitcoin Short-term Pullback Could Be Attractive To The Bulls
Bitcoin price extended its rise and traded to a new monthly high near $13,200 against the US Dollar. BTC is currently consolidating gains and dips are likely to remain attractive.
- Bitcoin is trading nicely above the $12,650 and $12,750 support levels.
- The price is attempting a fresh break above $13,000 and it is well above the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $13,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to remain well bid if it dips towards the $12,750 and $12,650 support levels.
Bitcoin Price Consolidating Near $13K
Bitcoin price climbed higher above the $13,000 resistance, but it seems to be struggling near the $13,200 level. A swing high was formed near $13,191 before BTC price started a downside correction.
There was a break below the $13,000 level, but the price remained well above the 100 hourly simple moving average. More importantly, there was a break below a major bullish trend line with support near $13,000 on the hourly chart of the BTC/USD pair.
The pair also spiked below the 50% Fib retracement level of the upward move from the $12,684 low to $13,191 high. However, the bulls are defending the $12,850 zone and the price is still well above the $12,650 and $12,750 support levels.
Source: BTCUSD on TradingView.com
The 61.8% Fib retracement level of the upward move from the $12,684 low to $13,191 high is also near the $12,887 to act as an immediate support. The price is currently attempting a fresh break above $13,000. If the bulls succeed, the price is likely to revisit the $13,200 resistance.
A clear break above the recent high and $13,200 could open the doors for more upsides may be towards the $13,650 zone in the near term.
More Downsides in BTC?
If bitcoin fails to climb above the $13,000 and $13,200 resistance levels, there could be an extended downside correction below the $12,850 level.
The next major support is near the $12,750 level, below which the bulls are likely to defend the main $12,650 support level in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is likely to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level, with a positive angle.
Major Support Levels – $12,850, followed by $12,650.
Major Resistance Levels – $13,000, $13,200 and $13,500.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow