Trading Bitcoin: Rejected at $12k, Now What?

Rejected at $12k, Now What?

Yesterday, Bitcoin was rejected at $12k resistance. Ever since, the bulls have been unable to regain momentum. Consequentially, Bitcoin could be in danger of forming a descending triangle with a base at $9.5k. Descending triangles break to the downside 70% of the time. However, all three moving averages are acting as support at roughly $10k. Therefore, Bitcoin may find support at $10k as opposed to decreasing straight to $9.5k. Furthermore, many traders will place buy orders just above the local high at $12.3k. If Bitcoin breaks above its previous resistance at both $12k & $12.3k, then an immediate surge to the $13k-$14k price region seems likely.

Daily

Bitcoin is now on a green ‘sell’ 9 candle. According to sequential theory, when price reaches a green 9 it is wise to take profit, exit the position entirely, or at least reevaluate the momentum of the trend. The next level of support on the daily chart is the 50MA (gray) at roughly $10.7k.

Source:coinmarketcap.com

Bitcoin Dominance

Bitcoin dominance has increased from 51% to 68% since the start of 2019. While Bitcoin’s spring and summer uptrend increased over 200%, the majority of altcoins have struggled.

Conclusion

If the bears take control, the first level of support is $11k. If Bitcoin cannot break above $12.3k and continues to form lower highs, the trend will be in grave danger of forming a descending triangle formation. However, if Bitcoin manages to break above resistance at $12.3k, expect the bulls to come out in full force for a retest of $13k.

Disclaimer: The author of the article hodls Bitcoin.