The world’s largest cryptocurrency, Bitcoin, is preparing for a rally through the $12,000 level of resistance having bounced 24% in the past 48 hours.
Bitcoin grabbed global attention last week as it surged to new yearly highs, peaking at $14,000 before a corrective move to the downside.
The correction saw the price of Bitcoin fall by more than 30%, with a drop to the 200 exponential moving average (EMA) on the four-hour chart being used as support at around $9,650.
Bitcoin is now 24% up in the past 48 hours following a 30% correction from the local top at $14,000.
— Oliver Knight (@KnightCoinRivet) July 4, 2019
That level acted as a pivot for Bitcoin, as a break through that level could have resulted in a move back down toward $8,000. Instead, Bitcoin bounced ferociously, powering through $10,000 and $11,000 with consummate ease.
At the time of writing, Bitcoin is attempting a move through the historical resistance level at $11,800. At the beginning of the 2018 bear market, this level acted as resistance on three occasions before price eventually fell all the way down to below $4,000.
Indicators point to all-time high
However, price indicators are suggesting that this time around it might be more simple. The daily stochastics have now crossed to the upside – the last time this happened was on June 11, when Bitcoin was at $8,000 before a rally to $14,000.
The cross before this came on April 30, with Bitcoin rallying all the way from $5,300 to $8,500 in the following two weeks. Both crosses proceeded a 65% and an 80% move to the upside, adding weight to today’s cross.
It’s worth noting that a 65% move to the upside from here would see a test of Bitcoin’s all-time high of $20,000.
It remains to be seen whether Bitcoin can sustain volume and momentum to the upside, especially as shorter time frames suggest a move back to around $11,200 – a break through the current level will be vital.
While Bitcoin continues to soar, altcoins continue to suffer against their Bitcoin pair. This draws parallels with the 2017 bull market that saw Bitcoin dominance rise all the way to 85% – still a far cry from the current level at 63%.
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