- Bitcoin pushed for a breakout above the formed falling wedge pattern on Tuesday.
- Bitcoin once again leading recovery, targets $13,000.
- The current technical picture still strongly bullish and further correction to the north is very imminent.
The crypto market is back in the green mid-way through this week’s trading. Bitcoin (BTC) once again is leading the recovery following the correction below $10,000 level. Besides, a low was formed around $9,675 before the recovery commenced yesterday. The current recovery is not unique to Bitcoin but other major digital assets are also correcting higher with Ethereum having stepped above $300, Ripple (XRP) is trading above $0.4 while Bitcoin is up 1.29% to change hands at $412.
BTC/USD 1-h chart
As discussed yesterday, Bitcoin pushed for a breakout above the formed falling wedge pattern. Prior to the wedge pattern breakout, BTC/USD has already reclaimed its position above $10,000. This gave the Bulls a boost above $11,000 level as well as the 100 Simple Moving Average (SMA) at $11,130.
Bitcoin stepped above $10,500 forming an intraday high at $11,566. Although the buyers have eyes on both $12,500 and $13,000, there has been a slight bear correction to the current $11,400. However, the current technical picture still strongly bullish and further correction to the north is very imminent.
Applied technical indicators like the Moving Average Convergence Divergence (MACD) has for the first time in July stepped into the positive territory. Moreover, the divergence suggests that the bulls are finally in control and could continue to gain traction in the European session.
The same bullish signals are shown are displayed by the Relative Strength Index (RSI) currently brushing shoulders with the overbought. Stepping above 70 levels could mark the beginning if the journey to $13,000.
Initial support lies at the 100 SMA currently at $11,079. $11,000 will function as the next support target in the event of retracement. Another support has been established at $10,000 while the weekly low at $9,675is the key support.
Bitcoin Key Technical Indicators:
Key Support Levels: $11,000, $10,000 and $9,675.
Critical Hurdle Areas: 12,000, $12,500 and $13,000.
MACD 1-h: Back into the positive zone while divergence suggests the bulls the capacity to push BTC higher.
RSI 1-h: Correction above 70 level will market the beginning of the correction above $12,000.