Bitcoin Technical Analysis: Why Are BTC/USD Chances Of Hitting $12,000 Again Narrowing?

By John Isige
August 31, 2020 Updated August 31, 2020
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Bitcoin And Ethereum Sees Unique Addresses Increasing As Prices Drop
  • Bitcoin recovers from last week’s lows at $11,100 over the weekend but fails to rise above $11,800.
  • Bitcoin bulls are seeking support above $11,600 in a bid to keep the focus on $12,000.

Following a short term double-top pattern I discussed on Monday, Bitcoin as expected, recovered above several key seller congestion zones including at $11,400, $11,500 and $11,600. The largest cryptocurrency extended the bullish action above $11,700 but lost steam before hitting $11,800.

Meanwhile, Bitcoin is trading at $11,685 after suffering another rejection from the levels traded marginally above $11,800. Buyers are working hard to ensure that BTC stays above $11,600. This way, they will have ample time building the momentum and enough volume to take down the resistances at $11,800 and $12,000 respectively.

The retreat from levels above $11,700 is reflected in the reversal of the Relative Strength Index (RSI). The price action from the double-bottom pattern saw the indicator rise above 60. However, it failed to rally into the overbought region, hence the ongoing retreat.

Related reading: On Steroinds? Surpasses Bitcoin $20,000 All-time High to Hit $38,983

BTC/USD 4-hour chart

BTC/USD price chart by Tradingview

On the other hand, the Moving Average Convergence Divergence (MACD) is holding slightly above the mean line. This means that buyers still have significance influence over the price. Unfortunately, it is not enough to consistently sustain gains above $12,000.

For now, it is okay to hold the price above $11,600 as long as bulls do not lose sight of $12,000. Note that, if support at $11,600 is shattered, Bitcoin could easily plunge to last week’s lows at $11,100.

Bitcoin Intraday Levels

Spot rate: $11,675

Percentage change: -0.31%

Relative change: -36

Trend: Short term bearish bias

Volatility: Low

Read more: Bitcoin Price Forecast: Is This BTC/USD Ultimate Ticket To $12,000?

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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