Bitcoin: The Key Resistance and 12 500$ as Target for Buyers
XBT / USD KRAKEN:XBTUSD
The price bounced from 10 000$ and continued the upward movement. The long positions opened based on reversal signals from the support zone are in profit now. The same goes for long positions that were opened based on a breakout above SMAs and the local resistance. I wrote about possible buying opportunities in the previous posts using the hourly and minute timeframes.
It is obvious that for buyers, pushing the price up won’t be a simple task. If we look at the daily chart , we will see a lot of barriers which must be broken for the continuation of the uptrend. We have 11 000$ resistance level which is supported by SMA20 and SMA50. Also, there is a local downtrend line which also must be broken as soon as the price will reach it. This mission is possible for strong buyers supported by fundamental factors. But what about the current situation? Do you think that the buyers are so strong? Do you see solid fundamental reasons which would support the market?
Share your thoughts in the comments. Let’s discuss it!
In spite of a possible reversal from the resistance zone with the further pullback, I think in the medium term the price can move back to 12 500$. If so, we should search for possible buying opportunities using reversal and breakout signals from different timeframes.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Source: TW DLavrov