Bitcoin Bull Run: Monthly Chart Now Suggests $13k Target
- Last month, Bitcoin formed a new pattern suggesting $13,200 (USD) as the new level the bulls need to hit.
- A move above $13,200 would be a convincing one. It would be a confirmation that the cryptocurrency is indeed rallying back from the close of $4,050 that we saw in April.
- Should Bitcoin break below July’s low of $9,049, it would confirm a reversal on the monthly chart.
- According to the hourly chart, Bitcoins prices are likely to go below $11,000 in the next 24 hours.
- A move above $11,000 would invalidate the bearish pattern on the hourly chart.
Monthly and Weekly Charts
According to a monthly chart pattern, Bitcoin now has to break above $13,200 if it is to rejuvenate the stalled bull market.
Last month, Bitcoin created an ‘inside bar pattern with a monthly low of $9,049 and a monthly high of $13,200. This was within the June trading range of $7,432 and $13,880.
An inside candle bar, which is characterized by a lower high and a higher low than the previous candle, is a sign of indecision in the market or consolidation in a narrowing price range.
The bulls will have it, if we see a convincing break above the inside bars high, and a further rally to beat July’s high of $13,200. The top cryptocurrency by market value is currently changing hands at $11,220 on Bitstamp. This shows minimal change on a 24-hour basis.
In April, Bitcoin broke into a bull market and rose to a high of $13,880. After this, it created last month’s inside bar candle. Since this pattern followed a notable uptrend, it is an indication that the bulls are exhausted. It also signified that there could soon be a trend change from bullish to bearish.
With that being said, such a bearish reversal would only be confirmed if Bitcoin ends the month of August below July’s low of $9,049.
That notwithstanding, Bitcoins acceptance above July’s high of $13,200 would indicate a continuation from Aprils low of close to $4,000.
The likelihood of Bitcoin closing this month above $13,200 would increase if prices would print a bullish weekly of more than $12,000.
A majority of observers are of the opinion that the uptrend would continue if Bitcoin attains a weekly close above $12,000. This is because in the last seven weeks, the cryptocurrency has failed four times to find acceptance above $12,000. A high-volume rally above $13,200 would be a much stronger confirmation.
Daily and Hourly Charts
In the last twenty-four hours, Bitcoin has created a lower high at the lower end of a flag pattern. This suggests the bearish continuation pattern predicted by the flag breakdown.
The bearish set up is further validated by the increasing selling volume and the relative strength index with a below 50 print.
The five-day and ten-day moving averages have produced a bearish crossover.
Prices are therefore likely to drop far below the five-week moving average, which is currently at $10,778.
Should the prices rise above $11,431, the bearish case would weaken and invalidate the bearish lower highs set up. In such a scenario, the $12000 and $13000 zone would be level to watch.
Key Support and Resistance Levels = $12,800, $12,600, $13,150, $13,200 and $13,500 (USD)
About the author:
Jay Jackson is a blockchain enthusiast and a freelance writer at topcryptowriter.com. He works closely with brands (people, businesses and startups) in the crypto sphere. He currently writes Blog posts, Guides, Press releases, ICO reviews, eBooks & Whitepapers. You can find him on LinkedIn.
Disclaimer: The above references an opinion and is for informational purposes only. Do not take this as personalised financial or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.
Last updated: 15/08/2019