Bitcoin Breaks the $12,000 Overhead Resistance; Here’s Why

Oct 21, 2020 at 12:03 // News
Coin Idol
Bitcoin bulls have ensured that price holds above the critical support zones

Today, BTC has made an impressive bullish run as price hit the high of $12,300. This current uptrend has been made possible because of recent developments.

Firstly, Bitcoin bulls have ensured that price holds above the critical support zones of $11100, $11,200, and $11,300. Secondly, the bulls breached the next resistance at the $11,500 high. This gives the king coin an accelerated price movement to reach the previous highs. Fundamentally, Bitcoin is rising for the past few days because of the weakness of the US dollar. 

There seems to be a correlation between Bitcoin and the U.S Dollar Currency Index (DXY) which has been falling. Technically, the BTC price is making a series of higher highs and higher lows in the lower time frame. The uptrend will be terminated when this pattern is disrupted. On the upside, if the current momentum is sustained, the next resistance to break is the $12,400 high. A break above the $12,400 high will propel BTC to make strong moves into the higher price levels.  

Bitcoin indicator reading

Bitcoin has risen above level 73 of the Relative Strength Index period 14. This indicates that the coin is trading in the overbought region of the market. The implication is that sellers may emerge to push prices downward. However, the uptrend will continue in a strong trending market. 

BTC - Coinidol - Coinidol.png

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7,000, $6,000, $5,000   

What is the next direction for BTC/USD?

Today, Bitcoin has risen and reached the 1.272 Fibonacci extension level. That is the high of $12,147 20. Presently, the BTC price has broken this level but the upward move is doubtful. According to the Fibonacci tool analysis, the market will reverse at 1.272 extension and return to 78.6 Fibonacci retracement level.

BTC - Coinidol - Coinidol 2 chart.png  

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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