Bitcoin Ambivalent at $13k, Will It Break Strong? - Short Term Price Analysis

Only a few hundred dollars remain for Bitcoin (BTC) until local highs are reached, after the leading cryptocurrency once again broke pattern a couple of days ago to head up. Now, the short timeframe indicators are a mixed bag of bullish and bearish - although the trend is clearly up.

We’ll start with the 4-hour, where we see the July 8 breakout above the entire block of $12,000 and the support/resistance (S/R) zone around it. This resistance is flipped support and has already been retested once.

Wicks above $13k(source: TradingView.com)

Wicks precisely at $13,000 indicate obvious resistance there, but we can already see a bull flag forming at this level indicating a slight contest. We note that volume here has matched the previous candle (screenshot taken minutes before candle close), and thus is maintaining.

slightly bearish 4-hour(source: TradingView.com)

The 4-hour indicators are not too bad, but are showing faint signs of fatigue: RSI peaks are almost level but not quite; and the histogram peaks are bearishly divergent, and the columns are ticking down slowly but surely.

Moving to the 2-hour, we see a slightly more negative picture. A classic rising wedge typically harkens a breakdown. Volume is dropping overall with the repeated rejection above $13,000. The 21-hour exponential moving average (EMA, blue line) has been holding price nicely on this chart, so we may look for a correction to hold there.

Rising wedge: not good(source: TradingView.com)

The indicators on the 2-hour are even more clear. RSI is clearly diverging on the peaks, and the histogram refuses to put in even a flat column. On the latter point, it is too early in the candle to tell, though.

2-hour indicators signalling down(source: TradingView.com)

All of these short term observations must be qualified with at least a daily view, below. This is a clearly bullish chart, with the rising volume on the $12k breakout (and today’s looking to match it), a solid close above resistance, and a mere $800 from the local top of $13,800 (Coinbase).

Daily looks better(source: TradingView.com)

The daily indicators look stellar, too, with an RSI which is daily rising; a bullish crossover (so far!) on the MACD; and a histogram ticking hard to the upside (so far!). A daily close with just the present indicators would probably see Bitcoin blowing straight through local highs with ease.

Daily indicators are strong ... if they can close in this aspect(source: TradingView.com)

Thus, today’s fight for $13,000 is somewhat critical in the short term.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.