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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

This Bullish Continuation Pattern Suggests Bitcoin Could Rally Above $12,500

Aayush Jindal
Aayush Jindal
1 year ago
2 mins read
Bitcoin

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Bitcoin price gained nearly 5% and it tested the $12,500 resistance against the US Dollar. BTC is currently correcting gains, but technicals suggest more upsides above $12,500.

  • Bitcoin broke the main $12,000 resistance area to start a strong upward move.
  • The price traded close to the $12,500 resistance and it is currently correcting gains.
  • There is a key bullish flag pattern forming with resistance near $12,380 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh rally if it clears the $12,380 and $12,400 resistance levels.

Bitcoin Price Breaks Key Resistance

Yesterday, we saw positive moves in bitcoin and discussed chances of an upside break above $12,000 against the US Dollar. BTC did gain momentum and surpassed the $11,850 resistance.

It opened the doors for an upside break above the $12,000 resistance level. The price broke the $12,200 resistance and settled well above the 100 hourly simple moving average. It traded close to the $12,500 resistance and it is currently correcting gains.

A new monthly high is formed near $12,479 and the price is now trading below $12,400. Bitcoin is testing the 23.6% Fib retracement level of the recent rally from the $11,785 swing low to $12,479 high.

Bitcoin

Bitcoin price trades above $12,200. Source: TradingView.com

It seems like there is a key bullish flag pattern forming with resistance near $12,380 on the hourly chart of the BTC/USD pair. The main support is now forming near the $12,120 level or the 50% Fib retracement level of the recent rally from the $11,785 swing low to $12,479 high.

On the upside, the price could start a fresh rally if it clears the flag resistance and the $12,400 level. An immediate resistance is near the $12,500 level. A successful close above the $12,500 level might open the doors for a sharp rise towards the $13,000 level in the near term.

Dips Supported in BTC?

If bitcoin fails to clear the $12,400 resistance, there might be a downside correction. The first major hurdle for the bears is seen near the $12,100 level.

The key support and a possible buy zone could be near the $12,000 level (the recent breakout zone), below which the price might decline towards the $11,900 level or the 100 hourly SMA.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower towards the 50 level.

Major Support Levels – $12,120, followed by $12,000.

Major Resistance Levels – $12,380, $12,400 and $12,500.

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Aayush Jindal
Aayush Jindal

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

Read more

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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