$BTC at $12000 resistance. $8400 still possible

08 Jul, 2019
by Lourens Pepler
Price Analysis
$BTC at $12000 resistance. $8400 still possible

After a weekend of pushing sideways, Bitcoin today seems to want to break out. Could this push up lead to a further increase, or is the fact that $12,000 is not yet breached telling us that BTC still wants to move down? This is the BTC analysis for 8 July 2019.

Highlights:

- Sideways weekend

- $BTC back at $12,000 resistance

- Daily RSI struggling to remain bullish

- $8400 area still possible

Starting off with a daily chart and looking towards momentum on RSI, we can see that the general trend is still down, since RSI is still making lower highs. This tells us that buying pressure is getting weaker these past two weeks.

BTC/USD chart provided by Tradingview

We also notice that RSI is now below a value of 60, which could indicate that BTC is done rising for now. When RSI is generally above 60 on the daily, indicates that BTC is bullish and that we should expect a nice uptrend, as seen in the example below.

BTC/USD chart provided by Tradingview

We still believe that BTC must experience oversold conditions before we will see a breakout to new highs. For this to happen we would like to see RSI fall down to below a value of 40, telling us that BTC is oversold and ready to return to the bull run. A dip in RSI to below 40 would surely bring BTC down to our main target area of $8400 for this retracement.

BTC/USD chart provided by Tradingview

Moving over to a 4 hour chart, we get a better view of the sideways action that occurred this past week. You can see that during sideways action, RSI bounces between 40 and 60, since neither the bulls or bears have the upper hand. The last time that RSI moved outside the box was last week, when momentum pushed to the down side. We have also not seen RSI move above 60 this past week, which could indicate that bears still have the upper hand.

BTC/USD chart provided by Tradingview

Since BTC has not breached $12000 resistance, we believe that one more decrease is still possible. Do you agree that BTC is not yet back in full bullish mode and needs to retrace one more time, or will we see BTC break past $12k resistance and move onto new highs? 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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