Bitcoin Rally Fails After Breaking Through $12,000
Bitcoin prices have rallied modestly within the last 24 hours, rising to their highest in roughly two weeks before losing momentum.
The world’s most prominent digital currency reached as much as $12,070.23 earlier today, its loftiest price since August 18, CoinDesk data shows.
However, the cryptocurrency’s upward price movement stalled, and the digital asset has been trading within a reasonably tight range, additional CoinDesk figures reveal.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, weighed in on the matter.
“$12,000 has continued to be a strong resistance for Bitcoin but the bulls have persisted over the last month, rallying around the $11,000 level to provide strong support,” said DiPasquale.
“The result is that Bitcoin continues to test this resistance at $12K despite multiple rejections,” he added.
Jon Pearlstone, publisher of the newsletter CryptoPatterns, fit the digital asset’s latest moves into a broader pattern, stating that:
“Since Bitcoin’s breakout above the key price level of $9,500 in late July, Bitcoin has ranged between $10,500 and $12,500.”
“While there are some bearish signs, the bulls have the edge with a bullish pattern on the weekly chart,” he added.
“The target is in the $15,000 range which would be a retest of the 2019 high of $14,000,” said Pearlstone.
“If Bitcoin can break out above that resistance level with strong volume, there are longer term patterns with prices much higher, starting with a test of all time highs around $20,000.”
DiPasquale also provided a bullish outlook for the digital currency.
“While the move today was too sharp to not invoke profit-taking, selling pressure is relatively balanced and not dominating market sentiment,” he stated.
“Moreover, the 20-day moving average is now acting as support and indicators, at the moment, are not as overheated as they were during rallies earlier last month.”
“All these factors together, in our opinion, bode well for Bitcoin, and by association, the crypto market.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.