The bullish trend continues in the Bitcoin (BTC) cryptocurrency market. Therefore, buyers should overcome resistance in the $ 12,000 area within the next week. In this case, BTC/USD will rise in price to $ 12,250 by August 18.
On Monday, the value of Bitcoin reached a record high since January 2018 – $ 12,080 (Bitstamp data). However, after that, BTC/USD value fell to $ 11,536. The support barrier of $ 11,500 survived, and a correction towards $ 11,800 began.
Now the cryptocurrency is trading in a range above the 50% Fib recorded during the dump from $ 12,084 to $ 11,536. But a resistance zone has formed at $ 11,900, while the next obstacle is located at $ 11,950. A successful break of this barrier will mean an increase in the BTC rate to the next barrier of $ 12,080 and then to $ 12,250.
There is a shrinking triangle with support at $ 11,700 and resistance at $ 11,900 on BTC/USD chart. The lines of the pattern will cross on August 12, so the further movement of the asset price will depend on the direction of the breakdown. In case of an upward movement, BTC will rise in price to $ 12,250, and the dump will provoke a drop in the value of the coin to $ 11,500.
In August, the bulls broke through resistance at $ 12,000 three times, but failed to gain a foothold above this mark. On the other hand, after the dump to $ 11,400 and $ 11,500, BTC was quickly bought back, and the bears were unable to build on their success. This situation indicates the beginning of the consolidation phase in the BTC market after the $ 9000 pump. In addition, since August 2, the price of the cryptocurrency has fluctuated in the range of $ 11,300 to $ 12,100.
The consolidation phase may drag on until November 2020. In this case, the BTC value will vary in a narrow corridor: from $ 10,200 (key support zone) to $ 12,000 (main resistance barrier). After the accumulation phase, a pump is expected, because the dynamics of the Bitcoin price change has gone beyond the bearish trend that emerged in August last year.