- Bitcoin price reached a yearly high of $ 12,134, marking a new milestone in a bull run that started in March 2020.
- However, the benchmark cryptocurrency suffered a "flash crash" a few minutes after the topping-out ceremony. The price dropped to $ 10,500, a level of support that previously served as resistance during Bitcoin's upward trend.
- TradingShot.com analysts now expect the price to rise to $ 12,000 again to retest the 2019 high.
According to analysts from TradingShot.com, the Bitcoin price could reach its 2019 high in the future.
Bitcoin $ 10,500 support
The trading signal provider stated in his latest analysis that BTC / USD would move towards $ 14,000 as long as $ 10,500 is maintained as support. The same level served as resistance for eleven months and prompted TradingShot to view it as a concrete floor in upcoming sessions.
The analogy also resulted from Bitcoin's pump-and-dump action earlier this week. On Sunday, the cryptocurrency price reached an annual high (YTD) of $ 12,134 (data from Coinbase), marking a new milestone in a bull run that started in March 2020.
However, Bitcoin was unable to sustain the upward trend above $ 12,000. It appears that traders who have stacked the cryptocurrency in the past four months have posted their profits, resulting in a huge downward correction.
The price eventually fell near $ 10,500, from where it recovered over $ 11,000.
BTC/USD price is maintaining support at near $10,500. Source: TradingView.com
"The retreat stopped at exactly the previous 11-month resistance of $ 10,500," TradingShot noted. "Will it become support now? If so, that would be incredibly positive for the future. So far we see some buying activity, although the price has largely consolidated after the first price Sharp Buy at 10500. ”
The portal also linked its upward uptake with an increasing channel pattern, as shown in the following table over purple.
BTC/USD price is rising higher in an ascending range. Source: TradingView.com
Except for the route in March 2020, which was practically noise in an otherwise rising Bitcoin, the price was already upward in November 2019 within an ascending channel pattern. TradingShot said BTC / USD could reach $ 14,000 while remaining above the median range.
"It is obvious that the median of the channel plays a very important role, that it is up / down (HH, HL trend lines) since it registered 8 cluster touches (including yesterday), much more than the Higher High / Higher low trend. Lines. 5 of the last seven times have given a retreat. "
The portal added that the $ 13,900 to $ 14,000 top is a perfect technical higher for the rising channel. However, it was also found that it is possible to see another monthly consolidation / accumulation phase before the 2019 test if trading interest is low in August.