Over the past four days, Bitcoin has traded mainly between the strong demand area of $11,500-$11,600 and the resistance area surrounding the $12,000 region.
Looking at the following 4-hour chart, we can see that Bitcoin is forming a triangle which is likely to get breached in the next couple of hours, ending the short-term consolidation.
The fact that the weekend is coming up is another sign that a sharp move is ahead. Over the past several months, we’ve seen lots of Bitcoin price action during the weekend, likely because many traders are off so it’s easier to manipulate the price.
Total Market Cap: $301 billion
Bitcoin Market Cap: $209 billion
BTC Dominance Index: 69.5% – The altcoins continue their one-way ticket to their slow death.
*Data from CoinGecko
Key Levels to Watch
Support/Resistance: The closest support area lies nearby in the $11,500-$11,600 region. The latter contains the mid-term ascending trend line (the lower leg of the triangle). Further below is the $11,200 support zone followed by $11,000, which contains the 50-day moving average line (marked purple on the daily chart).
From above, Bitcoin is still facing the daily chart’s yellow descending trend line (starting from the recent 2019 high) along with the $12,000 area. In case of a breakout, the next resistance area is $12,300, before the more significant resistance level at $12,500.
Daily chart’s RSI: After the nice surge to 64, the RSI is hovering in a tight range (60-64).
Trading Volume: Following the spike in volume, yesterday’s volume was back to average in anticipation of a bigger move.
BTC/USD Bitstamp 4-Hour Chart
BTC/USD Bitstamp 1-Day Chart
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Cryptocurrency charts by TradingView.