Reversal of Bullish Trend for Bitcoin

The price of Bitcoin might go above $12,000, and the daily chart started with a reversal of the bullish trend.   A high volume bullish breakout is seen in the hourly chart, and this is indicative of sufficient scope for the rise to the bearish lower high at $12,448.  If the prices find acceptance below the critical support level, there might be losses posted by BTC.

BTC has recovered from the recent lows by nearly 25%.  For the fifth consecutive year, at the time of the American Independent day, the BTC is seen set close to the green.

Several observers consider Bitcoin as an anti-establishment asset; however, it is seen that it has performed well during 5 out of 7 American independence days.  When comparing the performance of Bitcoin at the time of the American Independence Day, it can be seen that there were little changes in the prices during 2012, the price went high up to 3.16% during the year 2013 and went down to 2.63% loss during 2014.

BTC has been seen changing hands at $11,600 early today.  The price touched a high of $12,061.

On Wednesday, Bitcoin confirmed a 4% jump in 60 minutes, thereby establishing an upside break in the symmetrical triangle.  This was a sign of Bullish continuation on the hourly chart. A sharp rise in volume backed the breakout.

The momentum cooled over the past 10 hours.  There was a minor price pullback, and it did take the shape of a bull flag.  The pause restarts with the upward momentum.  The daily chart is showing a bullish candlestick pattern.  The recent pullback went to $9,614, and the price might soon trend towards $13,880.  Regardless of the price swings, the prices are set to be high.

When discussing the resistance levels, it has been seen that the upper Bollinger bands are seen at $12,100 on the 1 hour and the 4-hour charts.  The Fibonacci retracement charts showed $12,450 with 23.6% in the monthly Fibonacci retracement on the monthly charts.  The weekly Fibonacci retracement charts showed $13,000 in the upper line of the 1-day Bollinger bands.

Support levels were seen on the lower line of 15-min Bollinger Band with 23.6% Fibonacci retracement at $11,650.

While the Bitcoin has been struggling to sustain its short price surge, the Bitcoin bulls are having to defend their $10,000 price range, which is the psychological barrier for many times.  Traders and investors have feared a market correction, and it did happen so.

Richard Newman

Richard is the Editor-in-chief of Bitcoin Journal. He has over 10 years of experience with the news industry mainly handling the editorial cycle.

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