Bitcoin price wavy above $12,500, will bulls win?
3 min readTable of Contents
- The Bitcoin price wavy after last week’s break out
- Resistance at $13,370
- Support at $12,500
- Bitcoin benefits from the influx of institutions
Bitcoin price prediction: Current overview
The Bitcoin price is technically bullish from a top-down approach.
At the time of writing, the coin is changing hands at $13,078, gaining a decent 14 percent against the greenback in the last week of trading. Still, there hints of over-valuation given the resistance to the upsides in the past two or three days.
Over the weekend, prices were stuck within a tight trade range as pulls temporarily pushed prices to $13,361 (Coinbase data), before cooling down to present prices.
Like the last half of last week, the Bitcoin price remains in range mode. Today’s high is at $13,156, an expansion from the $13,045 open. However, as bears resist buyers’ attempts, there could be a temporary drop below $12,983.
Behind the uptick in participation and price expansion are supportive fundamentals. Chief among them is the evolution of Bitcoin as both a digital store of value and a medium of exchange as envisioned.
According to the Michael Saylor of MicroStrategy, investors—at the present state of affairs, can either long BTC or short USD since there is a distortion. In theory, he explains, “the cash flows of a risk-free equity asset would need to grow faster than the rate of monetary expansion for it to serve as a good store of value.”
His firm invested $475 million in BTC back in September, a move that triggered other public companies, including Square, to sink in $50 million.
Last week, Mode Banking–a London Stock Exchange-listed firm, said it will invest 10 percent of its cash reserves in Bitcoin to shield its investors from currency debasement, or inflation.
Bitcoin price movement in the last 24 hours
The Bitcoin price is bullish but ranging in the immediate term. Bulls are struggling to sustain prices above the $13,000 mark despite feeble attempts over the weekend.
For buyers, that prices are trending above Aug 2020 highs of $12,500, and most importantly the solid sell wall, now support, at $12,000 is bullish. Technically, every low should be a buying opportunity.
From candlestick arrangement, bull bars are banding along the upper BB hinting of underlying momentum. Besides, the divergence of Bollinger Bands points to volatility, which can benefit scalpers.
A pullback to $12,500 presents an opportunity for aggressive traders to ramp. However, a confirmation of higher highs above last week’s highs of around 13,370 could fuel more demand that may thrust prices back to $14,000 registered in June 2019.
Bitcoin price movement in the last hour
Reflecting the prevailing consolidation is the wavy, horizontal movement of prices in the lower time frames.
In the 1-hour chart, the Bitcoin prices are trading within an ascending triangle with caps at $13,370 on the upside and the support trend line on the lower side. The strong bear bars on Oct 23 and 25 points to dump downs.
Therefore, prices must edge past $13,370 above last week’s highs in a buy trend continuation that may lift the Bitcoin price back to $14,000 of June 2019.
Bitcoin price prediction: Conclusion
Fundamentals support Bitcoin bulls but the failure of prices to steadily edge higher towards $14,000 may suggest weakness and probable contrarians.
Even so, the break above $12,000 and $12,500 hints of demands and every low should technically be loading opportunities.
