- Bitcoin breaks the mundane trading to post gains two days in a row.
- Bitcoin bulls have a task to establish support above $12,500 and the 61.8% Fib level.
Bitcoin gained in value significantly on Monday in the wake of the mundane consolidating weekend sessions. As discussed in a previous analysis the breakout from the symmetrical triangle culminated in gains that initially stepped above the 61.8% Fib retracement level taken between the last drop from $13,884 to a low of $9,674.
BTC/USD 1-h chart
This reignited the bullish pressure by introducing a spark that gave the price a boost above $12,500 on Tuesday. BTC/USD inched closer to $13,000 but formed a weekly high at $12,814. The upside is, however, limited with Bitcoin retreating at $12,691.
This is the second day in a row this week where Bitcoin has posted formidable gains reviving the uptrend for other major cryptocurrencies Like Ethereum whose price traded closer to $320 and Ripple currently holding position above $0.40.
At the moment, Bitcoin price is trading above the 100 Simple Moving Average as an indicator of prevailing buying power and bulls’ control. In addition, the Moving Average Convergence Divergence (MACD) continued movement above the mean line (0.0) is a sign of buyers gaining traction against the bears.
The Relative Strength Index (RSI) shows a slightly different picture following the failure to break above $13,000. The indicator has reached overbought levels and suggest a reversal due to exhaustion. Therefore, Bitcoin bulls have a task to establish support above $12,500 and the 61.8% Fib level to allow them to gather the strength to assault $13,000 level in the near-term. However, if the reversal extends, $12,000 is the next support target while $11,500 (100 SMA), $11,000 and $10,000 will function as key support areas.
Bitcoin Key Technical Picture
MACD 1-h chart: Increasing divergence suggests rising buying power.
RSI 1-h chart: Oversold levels signal diminishing buying pressure.
Key Support Areas: 61.8% Fibo, $12,000, $11,500 and $10,000.
Key Hurdles: $12,814, $13,000 and $13,880.
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