Bitcoin price recovered today above the $12,000 resistance. BTC to USD exchanged as high as $12,233 but as of writing, the price flash crashed by almost $700 and according to coinmarketcap, the current Bitcoin price is $11742.53.
Bitcoin Price Analysis
In the past few days, there was a sharp increase in bitcoin price above the $11,200 resistance. BTC/USD did examine the $11,598 resistance. Moreover, it surged above the $12,000 resistance in the past three sessions.
Looking at the Bitcoin price chart, the BTC/USD, the pair got a powerful drive above $11,500 and the 25 simple moving average. Eventually, there was a rift above the $12,000 and $12,250 resistance levels. A wave high was built near the $12,320 level before the price began a downward revision. There was a definite drop below the $12,000 level plus the 23.9% Fib retracement level of the contemporary rally from the $10,516 low to $12,233 high.
At the moment, the price is trading above the $11,742. Moreover, there is an increasing channel building with support near $11,742 on the same chart. If there is a downward split below the channel support, the price could continue its drop below the $11,410 support. It might even cut the 50% Fib retracement level of the contemporary rally from the $10,516 low to $12,233 high.
In the considered situation, the price is expected to examine the $11,190 or $11,000 support level. Conversely, if the price supports the $11,740 support, it could jump above the $11,810 and $12,000 resistance levels.
Conclusion
Reasons I do not chase markets past initial breakout levels:
1. Increases the risk, altering entire reward/risk calculus
2. Super bad habit to break – will eventually wipe out an account
3. Will always be another market – trading is a marathon, not a sprint
Overall, bitcoin price is reviewing recent increases from $12,325 and it continues at a prospect of a downward continuation. If BTC/USD drops towards the $11,200 and $11,000 support, the bulls might view it as a nice buying event in the following sessions.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.
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