Bulls have been well in control of price action over the last few days as price levels rise 18% since the breakout mentioned in my previous analysis on Bitcoin. Bearish signs start have started to show as market price trades below a key resistance level at $12,400.
Bitcoin Price 2-Hour Analysis
On the 2 hour chart for XBT/USD, we can see the ascending channel formed as a result of the recent breakout taking price levels up to a key resistance level at $12,400. It’s likely that if BTC can surpass this resistance level price levels will attempt to break the yearly high around $14,000. Volume levels have been rising steadily throughout this newly formed uptrend which is a sign of strength.
POC (Point of Control) sits at $11,700 just above the current market price at $11,650. This tells us that there’s a lot of buyers and sellers at this level, typically short-term trends with such growth volume start to fade out over time but this doesn’t appear to be the case. 50 MA running along with the support of the ascending triangle around $11,450 acts as the last chance support to determine whether BTC will break down out of this ascending channel.
RSI sits neutral around 50.00 despite price levels still well within the sharp uptrend. This could mean we’re very close to a break-down or bulls could be re-fuelling. We’ll begin to have more clarity on this over the coming days.
On the 30 minute chart for XBT/USD, we can see Bitcoin is unfolding around the current market price. Each green spike is met shortly after with a larger red spike which could be manipulation. This allows whales to essentially sell their positions back to each-other to fuel another bullish run as price levels trade just below the key breakout point at $12,400. Adversely this could mean bulls strength is weakening and failing to gain any traction close to this key level mentioned.
On the technical analysis, you’ll see two points marked. This is a visible lower high and failure to gain essentially meaning bullish momentum isn’t strong enough to result in a higher market price yet. 200 EMA at $11,350 is now acting as the visible range support.
We know if price levels break down below the 200 EMA further downside is likely. Please refer back to my pullback target mentioned in a previous BTC analysis for direction if this happens.
Do you think BTC will break-down and fail to gain above $12,400? Please let us know your thoughts in the comments below!
This article is strictly for educational purposes and should not be construed as financial advice.
Images via Shutterstock, XBT/USD charts by Tradingview
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