October 13, 2020 / Analytics

Bitcoin Price Analysis: BTC/USD Will Reach $12,000

bitcoin

 

Bitcoin (BTC) cryptocurrency rate broke the resistance barrier at $ 11,500 and consolidated above this level. With a high degree of probability, the market will continue to positive dynamics, and the coin will rise in price to $ 12,000 by October 20.

Key Points

  • BTC price dropped below the 100-hour average of $ 11,529.
  • A bullish trend line has formed with support around $ 11,500 on the hourly chart.
  • The closest strong resistance barrier is located at $ 11,800.

BTC rose sharply from $ 11,241 to $ 11,732 (Bitstamp data) on Monday. There was a correction next step, as a result of which the asset fell to $ 11,420. During the upward movement, buyers broke through the resistance at $ 11,400. The price of the coin dropped to 50% Fib fixed during the pump from $ 11,241 to $ 11,732. A powerful support barrier formed in the zone, so the value of the cryptocurrency began to grow again, pushing off the barrier.

Bitcoin price is approaching the line of the bullish trend that started in March. Now this line will act as the main barrier of resistance. The asset rate could not break through the uptrend line and fell by almost 10% on September 19. Therefore, we can assume that within the next week the BTC price will reach the trend line around $ 12,000, and after that, it will collapse to at least $ 11,000. If the bulls overcome the barrier at $ 12,000 and consolidate above this mark, then BTC value will continue to grow.

btcusd

A Bearish Trend Is Coming To Bitcoin Market

Now BTC market is in the stage of correctional wave B judging by the wave analysis. After it completes, wave C will appear, and the coin rate will drop to a new bottom. On the other hand, on Oct 8, BTC surpassed the 144-day EMA and is hovering above the exponential average. This fact testifies in favor of the emergence of a bullish trend within the first bull run wave after the end of the correction period.

btcusd

In the case of a positive scenario, Bitcoin price will reach the previous maximum value – $ 12,400. If this barrier can be broken, the rate should rise to at least $ 13,800. As a result of the downward trend, the asset price may fall to $ 10,000. In the fall, the bears tried to gain a foothold twice unsuccessfully below this mark. If they complete this task on the third try, then the value of Bitcoin will go down.

Technical indicators:

  • 4 hours MACD indicator is in the bearish trend zone.
  • 4 hours RSI is above 60 (in the neutral zone).
  • Major Support Level – $ 11,200.
  • Major Resistance Level – $ 12,000.
  • The nearest pivot points are $ 11,131 and $ 11,737.
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