- Bitcoin stages a recovery from $9,665 support stepping above $12,000.
- Bitcoin upward correction is not finished as the technical picture stays intact.
Bitcoin recent recovery from lows under $10,000 stalled on trading slightly above $12,000 on Thursday. The gains come at time when the market is acutely volatile. The initial correction from highs around $13,800 found support at $9,665. The price did not, however, stay down for long as a recovery immediately ensued. The break above the 100 Simple Moving Average (SMA) 4-h propelled Bitcoin past key support turned resistance levels.
BTC/USD 4-h chart
At the time of writing, Bitcoin is trading at $11,789 while flirting with the 50% Fib retracement level taken between the last swing at $13,880 to a swing low of $9,605. Although Bitcoin has corrected from $12,000, the trend that prevails is very positive. The short-term ascending trendline continues to offer support while the confluence created by both the Bollinger Band 4-h Middle and the 100 SMA at $11,000 offers significant support.
The Bollinger Band Indicators Bitcoin market being very volatile even though the upside is capped at $12,000. On the downside, apart from $11,000 support, extended declines could find cushioning at $10,000 and the recent support at $9,665. $9,000 remains a support target and a major one for that purpose.
Looking at BTC/USD on a technical perspective, upward correction is not finished. A break above $12,000 is expected before the close of the session on Thursday. This break is likely to boost Bitcoin towards $13,000 critical level according to the increasing divergence in the MACD. The indicator has crossed into the positive region after sliding to levels at -398 in the declines on Monday and Tuesday this week.
BTC Key Technical Levels
Key Support levels: $11,000, $10,000, $9,665 and $9,000.
Critical hurdles: $12,000 and $13,000.
MACD 4-h: Increasing divergence; a key indicator for stronger bullish momentum in the short-term.