However, a bullish reversal pattern appears to be in play and could send BTC to the $12,000 level once again in the near-term. The aforementioned pattern is usually initiated by Whale traders trying to manipulate weak traders to disembark, before pushing the price to its former high. They incite panic among small traders by causing the price to approach their stop losses. As a result of the panic, a selling spree is triggered, giving Whales enough liquidity to buy back BTC at a cheaper price than before.
It is an old tactic and it works effortlessly as most traders are inexperienced and will flee at the first sight of danger (emotional).
In the 4-hour chart above from May last year, we can see the emergence and completion of this retrace pattern.
That said, we’ll be expecting to see a replication of the above pattern in the coming days, which will drive BTC price to $12,000, roughly 7% from the current price.
Bitcoin Price Levels to Watch
If the perceived pattern plays out adequately, we should be seeing the $12,000 price tag soon. However, a sideways consolidation will likely ensue after this for a while before bulls push the price to the next resistance.
Once the $12,000 level is cleared, the next hurdle will be the strong $12,350 line. Breaking above this level would open Bitcoin up to further record highs.
On the flip side, a drop from the $12,000 line would be immediately met with the $11,000 psychological level. Subsequent declines will be immediately supported by $10,800 and then the strong $10,500 support.
Total Market Capital: $343.3 billion
Bitcoin Market Capital: $207 billion
Bitcoin Dominance: 60.3%
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
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