Bitcoin is Hovering at key Resistance – Time for Bulls to Show Their Hand
Bitcoin’s price is hovering at key resistance level $11,700-11,800 (see chart below) and now we are at a critical stage that allows bulls to take charge by pushing price above resistance level, which can easily trigger a quick run over the $12,000 level and up to our target at $13,500. On the other hand, a failure to take advantage of this opportunity can quickly send Bitcoin’s price back below the important $10,000 price level.
Back on February 2nd, we suggested our followers to buy Bitcoin just above the $8,000 level, when price recovered back into the declining wedge chart pattern (see chart below). Since then we were able to lock in some profits at resistance level, and continued to watch the coin as it formed a reverse head and shoulder pattern (see 3 yellow arcs on chart).
Currently, Bitcoin is trading at $11,050 level following another rejection from the $11,700 level and in case price will continue to decline, long traders should consider closing the trade on a break down below the $9,200 level (see stop loss level on chart).
Another issue, we are watching, is the sluggish trading volume, which is somewhat concerning, even though that might be expected as Bitcoin price starting to behave more normally following the hype we seen back in November-December 2017. In our view, we should see more trading volume once Bitcoin’s price cross above resistance level described above.