Despite the bullish price action the last two weeks, Bitcoin was once again rejected at $12,000 resistance. A move above this level could take BTC to new yearly highs, but it seems the cryptocurrency may need to correct further to allow capital to flow into the market.
The following technical analysis will evaluate whether Bitcoin will first make new highs or if another correction is needed before a continuation of the bullish trend.
Bitcoin technical analysis
Bitcoin’s recent 34.6 percent retracement dropped its price below the 7-week moving average for the first time since mid-February, giving signs that a deeper decline is underway. Nonetheless, the coin managed to regain support at the 7-week moving average and last’s week candlestick was the highest weekly close of 2019—a sign that the correction has ended.
Now, Bitcoin seems to have resumed its upward trend. The TD sequential indicator turned into a green two candlestick. Based on this technical index, BTC may make new yearly highs once (and if) the current green two candlestick trades above the previous green one candle, a buy signal. If this scenario takes place, the TD sequential indicator predicts seven weeks of upward momentum before a sell signal is given in the form of a green nine candlestick.
BTC/USD by TradingView
Bitcoin seems poised to make new yearly highs, but it will first need to break through several notable resistance levels. On the 3-day chart, the areas of support and resistance given by the Fibonacci retracement indicator stipulate that BTC is currently trading between the 23.6 and 16.18 percent retracement levels.
A move above this zone will potentially take BTC to test the yearly high of $13,870 before testing new all-time highs. On the other hand,