Bitcoin Price Hits $12K Resistance Hard, Repeats Old Patterns at a Lower Level
July 15, 2019 by Ramiro Burgos
Well, that bull market rush is now a distant memory and some indicators now have the bitcoin price falling below $10,000 USD. Can you predict what could happen next by looking at the charts? Our weekly technical analysis can give you a better idea. Read on…
Also read: Bitcoin Price Loses Strength Under $12K, but Expect More Volatility
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Bitcoin Price Technical Analysis
Long-Term Analysis
In the end, the bitcoin price couldn’t go beyond that $12,000 resistance, and the upward movement is losing strength. Volatility is increasing. defining a wide range for high and low quoting action, which includes prices going up and down across a 4,000 basis point range so far. If it can´t overcome $12,000, the action could transfer to activate lower support levels at $9,000 and $7,000 instead.
A similar pattern to the one we saw in 2017 — when the bitcoin price reached its all time high — seems to appear in the chart, affecting the continuity of the uptrend. External factors motivate the Bullish Consensus with bullish opinions, helping sustain the recently-begun Optimism phase (according to Mass Psychology Analysis), but this depends on quotes staying over $10,000.
Mid-Term Analysis
Mathematical Indicators flipped down and the bullish trend could turn into a lateral market — but only if quotes sustain the action between $12,000 and $10,000 when volatility swings the quotes up and down.
If external factors stimulate prices to climb to higher levels, a new resistance at $12,000 could became a new trigger on the way up, and the next target level to consider should be BTC’s recent peak at $14,000. On the other hand, if the price brakes down to $10,000, it could re-enter the former lateral market between $9,000 and $7,000, temporarily cancelling those upper targets.
Short-Term Analysis
Japanese Candlestick Analysis’ fairy images contribute to setting an imaginary battlefield among Offer’s Crows and Soldiers from Demand between the $10,000 and $12,000 level. Similar activity recently locked BTC for two months between $9,000 and $7,000, before arriving at current stage. If the market weakens and slips down, it could return to the previous range.
Bollinger Bands Analysis reflects prices crossing down the center reference, changing the current pattern, and setting prices on a sideways movement. Depending on News, if prices recover some strength and surpass $12,000 resistance, it would work as a support in a hypothetical rise.
What do you think will happen to the bitcoin price? Share your predictions in the comments below.
If you find Ramiro’s analyses interesting or helpful, you can find out more about how he comes to his conclusions by checking out his primer book, the Manual de Análisis Técnico Aplicado a los Mercados Bursátiles. The text covers the whole range of technical analysis concepts, from introductory to advanced and everything in between. To order, send an email to [email protected]
Image via Pixabay
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