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In my previous analysis, we looked at the strength of the new Bitcoin uptrend as price levels traded just below $11,000 resistance. Since then, bulls have been well in control resulting in further upside towards $12,000.
Bitcoin Price 1-Hour Chart
On the 1 hour chart for XBT/USD, we can see how Bitcoin price entered into a clear period of consolidation inside an asymmetrical triangle, stemming from $11,500 throughout the middle of July to the new range low at $9,100. Bulls have since regained control and managed to win a compelling breakout to the upside. This resulted in price levels returning back to where the period of consolidation begun at $11,500.
POC (Point of Control) has begun to move up on this breakout to the upside meaning there is a lot of buying pressure taking place throughout this uptrend. This is a far cry from the buying and selling pressure seen throughout the period of consolidation, and will likely result in a sustainable uptrend with $9,100 remaining the range low. 200 EMA approaching the POC at $10,590 is likely to become a short-term pull-back target for bear traders.
As you can see, current price levels are quite overextended at the moment which will likely result in a brief pullback to sustain the newly formed short-term trend. This is why it makes sense to target the POC, as support now lies at this point. There will need to be a large amount of selling pressure in order for price levels to break below $10,590 at POC, along with the other main supports at $10,170, and $9,890.
Bitcoin Price 30-Minute Chart
On the 30 minute chart for XBT/USD, we can see how Bitcoin’s price has developed since the breakout more clearly. POC has moved up around $200 so it makes sense to take the 1 hour POC price at $10,590 and the 30 Minute POC price at $10,790 to create a ”range” of key support to target for a pull-back. As you can see, volume has increased throughout the last 24 hours as FOMO traders anticipate the key resistance above at $12,422 being broken.
Key resistance lies at $12,400 which is just shy of the yearly highs of $13,400 and $13,900. It’s likely that if BTC bulls muster up enough bullish momentum to break $12,400 then both of the yearly highs will be surpassed shortly after. This is very similar to what was mentioned in my previous analysis on BTC where I talked about there being little resistance between $11,000 and $12,000. This has clearly come true with price action moving very quickly after $11,000 was broken.
Do you think BTC is ready to surpass key resistance at $12,400? Please leave your thoughts in the comments below!
Images via Shutterstock, XBT/USD charts by Tradingview
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.