Last week has been credible for Bitcoin. The leading cryptocurrency price rose above $ 12,000 the previous weekend and later dropped to $ 10,500. There was a loss of $ 1600 within minutes.
Then, over the past week, the price once again recovered slowly towards the $ 12K level. On Thursday, a new 2020 record seemed to be approaching, but there was a second failure to break the $ 12,000 resistance.
Yesterday Bitcoin dropped as low as $ 11,200 in Bitstamp (previous resistance returned to support) and returned to the familiar price range of $ 11,500- $ 11,600. Currently, Bitcoin is traded at $ 11,768 as of the writing of this news.
Basic Levels to Follow
An uncorrected bull run – which is a parabolic run – will result in a disaster. We all remember that the 2017 parabolic bull ran for $ 20k and where the price was a year later – an 84% drop, about $ 3120.
Yesterday, there was a healthy correction in the uptrend. The rapid acquisition of the bottom shows the strength of the market.
On the 4-hour chart in the lower timeframe, Bitcoin forms a symmetrical triangle. This triangle will likely be decided to break into $ 11,800 or $ 11,400.
At the macro level we can see that the current price area corresponds to the rising trend line as strong resistance that will not be so easy to break. As can be seen, this line started to be formed in July 2019.
But as seen above, the good news comes from the weekly chart. In the longer term time frame (since 2017), we can see the bulls in control as long as Bitcoin holds the $ 10,500-10,800 area. After the impressive break of the descending trendline, it would make sense to retest the trend and confirm it as support before continuing with new peaks.