Bitcoin price is still struggling to gain bullish momentum above the $12,000 resistance against the US Dollar.
The price is likely setting up for the next break either above $12,000 or towards $11,500.
There is a new contracting triangle forming with resistance near $11,920 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price is likely to accelerate higher once it clears the key $12,000 resistance level.
Bitcoin price is trading in a crucial range below $12,000 against the US Dollar. BTC price could either rally above $12,000 or it might decline heavily below $11,500.
Bitcoin Price Analysis
Recently, we saw a few bullish moves above the $11,500 support in bitcoin price against the US Dollar. The BTC/USD pair even settled above the $11,600 level and the 100 hourly simple moving average. However, the price faced a strong resistance near the $12,000 level. Moreover, there were many attempts by the bulls to overcome the $12,000 hurdle, but they failed.
At the moment, the price is trading in a range above the $11,500 support. The last swing low was formed near the $11,657 before the price climbed above the 50% Fib retracement level of the recent decline from the $12,061 high to $11,657 low. However, the upward move remains capped near the $12,000 resistance. The price failed near the 76.4% Fib retracement level of the recent decline from the $12,061 high to $11,657 low.
More importantly, there is a new contracting triangle forming with resistance near $11,920 on the hourly chart of the BTC/USD pair. Therefore, the pair seems to be setting up for the next move either above $12,000 or below $11,700 in the near term. On the upside, the price is likely to accelerate higher once it clears the key $12,000 resistance level.
The next key resistance is near the $12,200 level, above which the price could surge above the $12,350 level. On the other hand, there is a strong support forming near the $11,700 and $11,500 levels. If the price continues to struggle near the $12,000 level, there could be a major bearish reaction. A daily close below the $11,500 support might spark a sharp slide.
Looking at the chart, bitcoin price is clearly struggling to gain bullish momentum above the $12,000 resistance. The next major break depends on the $12,000 resistance. The chances of a downside break are increasing, considering the number of failures near $12,000.
Hourly MACD – The MACD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just below the 50 level.
Major Support Levels – $11,700 followed by $11,500.
Major Resistance Levels – $12,000, $12,100 and $12,200.
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