Bitcoin Support at $10.5K Could Push Price Towards 2019 High: Analyst
- Bitcoin price hit a year-to-date high at $12,134, notching a new milestone in a bull run that started in March 2020.
- The benchmark cryptocurrency, nevertheless, underwent a “flash crash” minutes after topping out. Its price fell towards $10,500, a support level that earlier served as resistance during the Bitcoin’s uptrend.
- Analysts at TradingShot.com now expects the price to bounce back towards $12,000 to retest 2019 high.
Bitcoin price could hit the 2019 peak level moving forward, according to analysts at TradingShot.com.
The trading signals provider stated in its latest analysis that BTC/USD would move towards $14,000 as long as it maintains $10,500 as its support. The same level served as resistance for eleven months, prompting TradingShot to see it as a concrete price floor in the coming sessions.
The analogy also appeared out of Bitcoin’s pump-and-dump action earlier this week. On Sunday, the cryptocurrency price hit a year-to-date (YTD) high at $12,134 (data from Coinbase), creating a new milestone in a bull run that started in March 2020.
However, Bitcoin failed to sustain the uptrend above $12,000. So it appears, traders who have stacked the cryptocurrency over the last four months booked their profits, causing a huge downside correction.
The price eventually fell near $10,500, from where it bounced back above $11,000 all over again.
BTC/USD price is maintaining support at near $10,500. Source: TradingView.com
“The pull-back stopped exactly on the former 11 month Resistance of $10,500,” noted TradingShot. “Will it turn into a Support now? If yes, that would be incredibly positive moving forward. So far we see some buying activity, although the price has been mostly consolidating after the initial sharp buying at 10500.”
The portal also coupled its upside take with a rising channel pattern, as depicted via purple in the chart below.
BTC/USD price is rising higher in an ascending range. Source: TradingView.com
Barring the March 2020 rout, which was practically noise in an otherwise rising Bitcoin, the price typically trended upwards inside an Ascending Channel pattern from as back as November 2019. TradingShot said that BTC/USD could hit $14,000 also while sustaining above the range’s median.
“It is obvious that the Channel’s Median is playing a much important role that it’s top/ bottom (HH, HL trend-lines) as it has registered (including yesterday) 8 cluster touches, much more than the Higher High/ Higher Low trend-lines. Out of the last 7 times, 5 delivered a pull-back.”
The portal added that the $13,900-14,000 top makes for a perfect technical Higher High for the Rising Channel. Nevertheless, it also noted that it is possible to see another monthly consolidation/accumulation phase before testing 2019 high if the trading interest in August is low.