The DeFi mania and altcoin surge have somewhat stolen Bitcoin’s limelight. While the coin did manage to climb multiple resistances taking advantage of the bullish comeback, a push above the coveted $12,000-mark, however, seems unlikely, at least in the course of the next one week.
Bitcoin appears to be in no hurry for an upward break which presented an interesting quandary for the coin as it continued to move sideways on the charts.
Bitcoin [BTC] 1-Day Chart
Upon a cursory glance of the above daily chart, it can be noted that Bitcoin has successfully broken multiple resistance levels. Such as – 0.382 Fib at $11,632 and 0.5 Fib at 11,792. However, if we closely observe there exist a few other crucial targets in order for Bitcoin to crack the $12,000 level. If BTC candles breach the 0.618 Fib level at $11,953 and gain the necessary momentum, it could climb all the way to 0.786 Fib at $12,181.
Following this, BTC would target the subsequent level of 1 Fib at $12,473.
But Bitcoin had a pretty dormant price action over the past week, despite the rising divergence between the 50 daily moving average [Pink] and the 100 daily moving average [Yellow]. A sudden bullish swing did not appear in the cards.
This was evidenced by the formation of a bearish divergence taking shape between BTC’s price [which formed higher highs] and volume [forming lower lows]. This was a sign of weakening bullishness in the market.
A similar case of falling trendline was also observed in RSI’s movement which depicted the formation of lower lows during the same period of time further indicating diminishing bullish pressure.
Conclusion:
Before making a headway above the long-anticipated $12,000 mark, BTC is likely to undergo a potential correction that could trigger a drop to its immediate support level of $11,322. In a scenario of this point failing to hold, losses could extend to the 50 DMA at $11,059. However, a loss to that extent is highly unlikely as evidenced by the RSI which depicted a consistent buying pressure among the market participants.