Bitcoin Breaks $12k, Market Structure - Price Analysis

  • Short term: caution advised until a breakout above $12k is confirmed
  • Long term: strong uptrend remains intact

After a straight shot up from $9,400, Bitcoin (BTC) seems to be back on full throttle in its uptrend, after retaking all key resistances and breaking the local market structure.

Starting on the 4-hour chart, we see that price has continued to plow into overbought levels on the indicators. The RSI here will probably end up peaking out with just a slightly lower high, which may presage a retest of the newly taken levels.

Low timeframe starting to lose some strengthBTC chart by TradingView

Volume is doing well on the push past $12,000 (Bitstamp), although more would be better to secure a position above the cardinal price level - and seems to be flagging after one of four hours of trading. The RSI looks likely to put in a higher low, so a retest of the breakout zone may come. A successful retest of this area would be very bullish.

Turning to the 12-hour chart, we see that Bitcoin is in the process of breaking out of a parallel channel which has contained the local market since late June. Bitcoin now has the critical task of proving its longevity outside of this structure.

Break of market structureBTC chart by Trading View

Here, we should note that the volume trend, at least on this chart, remains intact and trending down. The current volume bar looks unlikely to break this trend, having only three hours (of 12) of trading left at time of writing.

Looking at the 12-hour indicators, however, we see a really strong picture.

Beautiful indicatorsBTC chart by Trading View

The RSI is putting in higher lows and highs, and bullishly diverging from the most recent price peak. The histogram is ticking up with no loss of trend - it’s not arcing down - and the MACD averages are fully fanned up and out. This is a vigorous picture of health

We finally turn to the all-important daily chart, and here we see that the volume trend has been broken on this chart - and on the bellwether Coinbase exchange to boot. Seven days of gains have been painted on this chart, with today making a possible eighth.

A daily close will above $12k go a long wayBTC chart by Trading View

The trick will be to close the day above $12,000, and with an equal or stronger volume showing versus yesterday. This would give strong encouragement to the idea that, not only is the Bitcoin retracement over with $9,000 as the bottom; but also that a return to the uptrend on both high and low timeframes is at hand.

In summation, the more time spent above $12,000, the more conviction we can have in a structure break and renewed uptrend. And if it does not hold, there are several important levels below $12k to snag Bitcoin on the way down.

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

Cannabis Shops Turn to Crypto Apps Amidst Coronavirus Cash Shortages

Michael LaVere
  • Cannabis shops in Boulder, Colorado are using bitcoin payment app Strike to conduct "contactless" exchanges.
  • Cash shortages and lack of sanitation are causing businesses to find alternative means for transaction. 

Cannabis shops are using bitcoin payment services to conduct business in place of fiat amidst the coronavirus pandemic. 

According to a report by CoinDesk, cannabis dispensaries in Boulder, Colorado have been onboarded to the closed beta for Strike, a bitcoin payment service application founded by lighting network supporter Zap. 

Zap, founded by Jack Mallers, has been operating a closed beta for the payment application Strike which allows users the option of sending bitcoin or dollars and receiving funds in their bank account. The application uses a simple QR code interface, similar to Venmo, that allows users to send funds without having prior knowledge or expertise with bitcoin. 

Mallers said, 

Every Strike user is given a public domain at strike.me. We’re using Lightning for really fast online settlement of value transfers. … It’s also beneficial for privacy on the sender’s side.

Johnny Kurish, general manager at Boulder’s Helping Hands Herbals cannabis shop, said the application allowed his dispensary to process $1,000 worth of purchases since being added to the beta last week. 

Kurish said the dispensary will switch to only accepting Strike payments, which allow for contactless exchanges in light of the coronavirus pandemic. 

He said, 

We’re really lucky to have curbside drop-offs. We check the ID through the roll-up window, deliver the cannabis to a podium in front of the car. We’re happy to reopen with an option that’s safe for our staff.

Featured Image Credit: Photo via Pixabay.com