- Bitcoin climbed above $12,000 for the first time since September 1.
- The rank 1 digital asset is facing very little resistance to the upside and could be eying up $14,000.
Bitcoin has been trading under $12,000 for practically the past year. The digital asset has attempted to crack the psychological level several times in the past in August 2019, August 2020, and now. Although the breakout above $12,000 is a great sign for the bulls, Bitcoin needs to see enough continuation to the upside to mitigate the risk of another rejection.Â
Bitcoin Price Analysis
The daily chart is clearly in favor of the bulls after Bitcoin has established several higher lows and higher highs confirming an uptrend. The MACD has remained bullish since September 15 gaining strength. The current price is significantly trading above the 50-SMA, 100-SMA, and the 200-SMA.
However, the RSI is overextended which could pose a small threat to the bulls in the short-term. Nonetheless, the last time this indicator passed into the overbought zone on July 27, the price of Bitcoin continued climbing from $11,200 towards the high of $12,468.
The IOMAP chart by IntoTheBlock seems to confirm the theory that Bitcoin is facing very little resistance to the upside. This metric shows specific price ranges and the total volume of BTC bought at those levels.
The chart indicates that bulls are facing almost no opposition well into $14,077 while they have strong support areas below $12,000.
One of the most important factors to look out for is a close above $12,000 on the weekly chart, something that hasn’t happened since January 2018. There are still around 5 days left for this week to end, so there is plenty of time for the bears to jump into action.
If the price of Bitcoin can close above the psychological level at $12,000 by the end of this week, the bulls will use $14,000 as the next price target. In fact, there seems to be very little resistance until the all-time high at $20,000.
The interest in Bitcoin is growing significantly, especially after the recent breakout. According to statistics from Glassnode, Bitcoin’s transaction volume reached a 13-month high of 190,052 BTC.
Additionally, BTC supply in loss also decreased notably today and it’s down 39% from the peak in 2020. Considering all the positive metrics in favor of Bitcoin, it seems that the $14,000 price target is achievable even by the end of 2020.
