Bitcoin (BTC) Price Analysis – July 12
Bitcoin price reached the key $11,000 support area against the US Dollar. BTC is currently consolidating and seems to be preparing for the next move either above $12,000 or towards $10,500.
BTC/USD Long-term Trend: Bullish (Daily Chart)
Resistance levels: $14,000, $14,500 $15,000
Support levels: $9,000, $8,500, $8,000
Yesterday, we saw a sharp decline in Bitcoin price below the $12,000 support against the US Dollar. The BTC/USD pair also settled below the $12,000 support level and above the moving average of 50 periods. Moreover, there was a break below the $11,800 support and the price traded close to the $11,000 support then formed a new weekly low at $10,974. Today, the price is consolidating losses above the $11,000 support level and currently trading at $11,613.14. On the upside, if there is an upside break above $11,500 and $12,000, the Bitcoin price could recover towards the $12,500 and $13,000 levels.
However, the main resistance for the bulls is near the $14,000, $14,500 and $15,000 levels. Conversely, there could be more losses if there is no break above $12,000. The main supports on the downside are near $10,000 and $10,500. If there is a downside break below $10,500, the price may accelerate decline towards the $9,000, $8,500 and $7,000 support levels. The RSI for BTC/USD is currently recovering and it could test the 60-level.
BTC/USD Medium-term Trend: Bullish (4H Chart)
Looking technically, BTC/USD should recover above $11,700 to mitigate the short-term bearish pressure and allow for an extended recovery towards $12,000. This psychological barrier is closely followed by $12,100 (MA50 4-hour and the middle line of 4-hour Bollinger Band). A sustainable move below this area will open up the way towards $13,000.
In contrast, the critical support is at $11,000 and a sustainable move lower will increase the downside pressure and push the price towards $10,500 (MA50, 4-hour, the lower boundary of the Bollinger Band). Considering that the Relative Strength Index (RSI) on a 4-hour chart is starting to revert to the upside, we might expect that the bull’s case scenario will play out.
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