Analysis

Bitcoin Just Broke $12K To Start A Fresh Cycle of Strong Uptrend

Bitcoin is gaining momentum and it recently crossed $ 12,000 against the US Dollar. BTC is showing positive signs and it is likely to continue higher towards $ 12,400.

  • Bitcoin is trading in a nice uptrend above the $ 11,800 and $ 12,000 levels.
  • The price traded to a new monthly high at $ 12,084 and it is currently well above the 100 hourly simple moving average.
  • There was a break above a short-term declining channel with resistance near $ 11,665 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct lower in the short-term, but dips are likely to remain well bid near $ 11,900 and $ 11,800.

Bitcoin Price is Gaining Momentum

In the past few sessions, bitcoin price started a fresh increase from the $ 11,500 support area against the US Dollar. The price gained traction and broke a couple of important hurdles near $ 11,800.

As a result, the price broke the $ 12,000 resistance and it settled well above the 100 hourly simple moving average. During the rise, there was a break above a short-term declining channel with resistance near $ 11,665 on the hourly chart of the BTC/USD pair.

A new monthly high is formed near $ 12,084 and the price is currently consolidating gains. An initial support on the downside is near the $ 12,000 level. It is close to the 23.6% Fib retracement level of the recent rally from the $ 11,536 swing low to $ 12,084 high.

Bitcoin Price

Bitcoin price trades above $ 11,200. Source: TradingView.com

The main support on the downside is forming near the $ 11,900 and $ 11,800 levels (the recent breakout zone). It is close to the 50% Fib retracement level of the recent rally from the $ 11,536 swing low to $ 12,084 high.

On the upside, the $ 12,050 and $ 12,100 are initial hurdles for the bulls. A successful break above the $ 12,100 level could open the doors for a push towards the $ 12,400 and $ 12,500 resistance levels in the near term.

Dips Supported in BTC?

If bitcoin starts a downside correction, the bulls are likely to protect dips near the $ 11,900 level. The first key support is near the $ 11,800 level, below which the price might continue to move down.

In the mentioned case, the price is likely to continue lower towards the $ 11,700 level and the 100 hourly SMA, where the bulls are likely to take a stand.

Technical indicators:

Hourly MACD – The MACD is gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level.

Major Support Levels – $ 11,900, followed by $ 11,800.

Major Resistance Levels – $ 12,050, $ 12,100 and $ 12,400.

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Analysis – NewsBTC

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