Markets are recovering from yesterday’s fall, August 11, 2020. Bitcoin (BTC) is back in the green: for how long? We don’t know. The back and forth of the last few days is raising some questions about the direction a Bitcoin unable to break the $ 12,000 will take. Some technical indicators make it possible to understand that the bulls are still there and always have enough strength to run; these indicators also provide a better understanding of the stake behind the $ 12,000.
Bitcoin unable to break $ 12,000: what next?
Bitcoin fell to the $ 11,200 level following yesterday’s drop. The BTC has resumed today, August 12, 2020, on its upward path and, is trading at $ 11,550, as of this writing.
How do you interpret the repeated failure of $ 12,000 and the current compression of the price of BTC between $ 11,000 and $ 12,000?
The bullish interpretation would be to say that an ascent above $ 12,000 is more than likely because the selling pressure that exists at this main resistance level is unable to bring down sustainably Bitcoin below its current containment zone.
The Bearish interpretation would rather go in the opposite direction: the pressure to buy is insufficient to allow the BTC to cross $ 12,000 and, this pressure will continually decrease as failures occur, given the fear that these failures are gradually building up in the markets. The BTC could thus descend permanently below its current confinement zone and even return to the 4-figure club.
A ten-day comeback
More than 1% daily gain in sight for Bitcoin today, after yesterday’s big red candlestick; Bitcoin opened today at its closing level of 1er August 2020.
The daily, weekly and monthly RSI (14) of Bitcoin are still in a bullish zone; their value is currently above 60.
Technically, the $ 12,000 is daily, weekly and monthly resistance of the BTC : by breaking them, Bitcoin is therefore very likely to enter a new phase of its current bull cycle. Could the huge stake behind this $ 12,000 explain the magnitude of the challenge to break this major resistance?
Everything is said for today! We are waiting for the rest of the film, hoping that it will not disappoint us and that we will be treated to a different scenario. Things are really likely to jostle and get more interesting after a sustained exceedance of $ 12,000 – the editor that I am, looking forward to this moment to serve you original BTC dishes.
Litecoin, welcome in the Silver Age