TA: Bitcoin Short-term Pullback Could Be Attractive To The Bulls

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price extended its rise and traded to a new monthly high near $13,200 against the US Dollar. BTC is currently consolidating gains and dips are likely to remain attractive.

Bitcoin is trading nicely above the $12,650 and $12,750 support levels.
The price is attempting a fresh break above $13,000 and it is well above the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $13,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to remain well bid if it dips towards the $12,750 and $12,650 support levels.

Bitcoin Price Consolidating Near $13K

Bitcoin price climbed higher above the $13,000 resistance, but it seems to be struggling near the $13,200 level. A swing high was formed near $13,191 before BTC price started a downside correction.

There was a break below the $13,000 level, but the price remained well above the 100 hourly simple moving average. More importantly, there was a break below a major bullish trend line with support near $13,000 on the hourly chart of the BTC/USD pair.

The pair also spiked below the 50% Fib retracement level of the upward move from the $12,684 low to $13,191 high. However, the bulls are defending the $12,850 zone and the price is still well above the $12,650 and $12,750 support levels.

Source: BTCUSD on TradingView.com

The 61.8% Fib retracement level of the upward move from the $12,684 low to $13,191 high is also near the $12,887 to act as an immediate support. The price is currently attempting a fresh break above $13,000. If the bulls succeed, the price is likely to revisit the $13,200 resistance.

A clear break above the recent high and $13,200 could open the doors for more upsides may be towards the $13,650 zone in the near term.

More Downsides in BTC?

If bitcoin fails to climb above the $13,000 and $13,200 resistance levels, there could be an extended downside correction below the $12,850 level.

The next major support is near the $12,750 level, below which the bulls are likely to defend the main $12,650 support level in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is likely to move back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level, with a positive angle.

Major Support Levels – $12,850, followed by $12,650.

Major Resistance Levels – $13,000, $13,200 and $13,500.

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.

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