Bitcoin

Here’s How High One Trader Expects Bitcoin to Climb Before Forming a Top

Cole Petersen | Aug 16, 2020 | 16:00

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• Bitcoin faced yet another $12,000 rejection yesterday that caused the cryptocurrency’s price to reel down towards $11,700
• This level appears to have been established as support, as buyers ardently defended against any break below it
• It now appears that the crypto’s short-term technical outlook remains unchanged, as BTC is still consolidating within the upper-$11,000 region
• As for where it may go next, one analyst explained that he is looking towards $13,000 as a near-term target
• He does note that the visit to this level may mark a mid-term top for the cryptocurrency that is directly followed by significant downside

Bitcoin is still caught within its prolonged consolidation phase in the upper-$11,000 region despite it recently facing some intense selling pressure at $12,000.

The rejection here sent BTC plunging to lows of $11,700, with bulls carefully defending against a dip below this apparent support level.

As for where the cryptocurrency may trend next, analysts are noting that it remains poised for upside.

Because each of the rejections it has faced at $12,000 in recent weeks have been growing gradually weaker, it may be only a matter of time before this level is shattered.

One analyst is watching for a rally towards $13,000 in the near-term, which is where he expects it to form a mid-term top.

Bitcoin Rejected at $12,000 Once Again, But Bulls Remain Strong 

At the time of writing, Bitcoin is trading down just under 1% at its current price of $11,800. This is around the level at which the cryptocurrency has been trading for the past several days and weeks.

Overnight, the benchmark cryptocurrency made another bid at breaking $12,000, which resulted in a firm rejection.

This isn’t the first rejection that has been faced at this level in recent weeks, as bears have been ardently defending against any sustained move above here.

That being said, each rejection at this level is growing increasingly weak, which may be a sign that bulls are slowly gaining the upper hand over bears.

Trader: BTC to Rally Towards $13,000 Before Forming Mid-Term Top 

While speaking about the benchmark crypto’s near-term outlook, one trader explained that he expects Bitcoin to see a move towards $13,000 before it starts topping out.

“I think BTC will go for the 13K$ area, which is yearly pivot resistance. That’s where I’ll look to hedge my remaining stack fully and wait to see if it holds or keeps going. IMO we’re close to topping, not here yet. Too much pressure at rally’s high not to give another push.”

Image Courtesy of SalsaTekila. Chart via TradingView.

For $13,000 to be in the cards, it is imperative that Bitcoin posts a strong weekly close later today.

Featured image from Unsplash.
Charts and pricing data via TradingView.