On our previous analysis from two days ago, we discussed the descending trend-line, which was tested several times and got rejected.
Along with the descending trend-line, there was the critical mid-term ascending trend-line (daily chart), that maintained nicely by the price action.
With the decreasing daily volume and the above triangle formation, it was a matter of time until Bitcoin will break-out to either direction. We have pointed out the reasons why we thought the situation was bullish. And just an hour ago, Bitcoin saw a massive spike to the bullish side, breaking up the descending trend-line, facing the $12,000 resistance as of writing this.
Total Market Cap: $336 billion
Bitcoin Market Cap: $211 billion
BTC Dominance Index: 62.9%
*Data by CoinGecko
Following the breakout of the critical $11,500 – $11,600 resistance level, Bitcoin is now facing the $12,000 resistance area. Breaking the last and the next target lies at $12,200 (the top from June 29), before the stronger resistance at $12,500. Breaking up, and Bitcoin is aiming for the 2019 current high at $13,500 – $13,880.
From below, the nearest support now lies at $11,800, before the resistance turned support area of $11,500. Further below is $11,200, $10,800 and $10,300. Below $10K is the $9800 and $9400 (local high along with the daily chart’s 50 days moving average line).
From the bearish side, the closest support lies at $11,200. Before the $11K, and the $10,800 (the low from yesterday). Breaking down the last, along with the ascending mid-term trend line on the daily chart, and the short-term will turn bearish. Further below lies $10,600, $10,300 and $9,800. And to mention the $9,400 prior high (from June), along with the daily chart’s 50-days moving average line.
– Daily chart’s RSI: The RSI is gaining momentum nicely, however, to continue the way up Bitcoin will need to create a higher high and surpass RSI level of 62-63, which is the last RSI high. The Stochastic RSI oscillator has done a cross-over and is about to enter the bullish territory, which could ignite the BTC rally.
– Trading Volume: the recent spike was followed by a huge amount of volume, following days of decreasing volume to the anticipated move.
– BitFinex open short positions: Following the spike, many traders opened new short positions: There are now 12.7K BTC short positions, which is a 12% gain.