Bitcoin momentum still growing; next target: $12.5k

24 Jun, 2019
by Lourens Pepler
Price Analysis
Bitcoin momentum still growing; next target: $12.5k

This weekend we saw Bitcoin finally break the $10k level with ease and reached a high of $11286. According to the Fib tool, we are almost at the peak of this expansion for BTC. Can momentum get us to the final target of $12.5k? This is our BTC analysis for 24 June 2019.

Highlights:

- Daily above 70 on RSI

- Still holding above trend

- 4-hour momentum still growing

- Final target of $12500

Starting off with the daily chart and plotting the fib tool over the first impulse wave, allows us to see the possible future expansion levels for BTC. We can now see that Bitcoin has hit all the expansion levels, except for the final level, the 423%. For BTC to reach this level would require strong buying momentum behind it.

BTC/USD chart provided by Tradingview

Moving over to RSI we can see that momentum is still holding above the uptrend of ours and that it is once again above 70. Since we are still above the trend line and also above 70 on RSI could mean that BTC still has the strength to push onto our final target of $12500.

BTC/USD chart provided by Tradingview

Moving over to the 4-hour chart, we can now get a better view of momentum and its overall direction. Drawing a simple trendline on the lows of RSI, we can see that momentum is still in an uptrend.

Currently sitting on the trend could indicate that BTC is once again ready to move up. Since RSI is in the high 60s, tells us that bulls are still in control and that is likely to move back above 70.

Looking back to 13 May, we are able to spot a similar structure to today. You can see that after momentum found support on the trendline, it soon moved back above 70 on RSI to complete its final push. Assuming the same action for today would mean that we can see Bitcoin reach $12500 within the next 3 days.

BTC/USD chart provided by Tradingview

Since we are at yearly highs and also at a Fib level, it is important to also look at the bearish scenario. Moving back to the daily chart, we notice that divergence is once again forming, with price making higher highs, but RSI making lower highs. This could indicate that the reversal is ready to take place and that we have seen the peak in price for now.

BTC/USD chart provided by Tradingview

Do you think Bitcoin has reached its high for now, or do you think Bitcoin can hold this momentum and reach our main target of $12500? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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