After a slow but steady start of upward momentum, Bitcoin finally managed to break through the very important price barrier at 12K.
The ground is now clear to reach the previous 2020 high, and will most likely be broken.
The strange thing about the current situation is that despite the strong dominance of the BTC over the overall crypto market, the upward movement we’re witnessing hasn’t influenced other participants much.
It is likely that this is due to one or a few large capital orders, totally aimed at loosening the largest of the crypto currencies, but this is the subject of another article.
For now let’s focus on analyzing what we have at our disposal, and that is the price behavior of the 3 largest in the ecosystem, in order to forecast its near future.
At the time of writing, Bitcoin has made a profit of 2.58% so far this year, and is trading at $12,229. Ethereum, on the other hand, is trading at $379.17, with a small profit of 0.52%, while Ripple has been trading at $0.2480 and has been up 0.74% in the last 24 hours.
Technical analysis of Bitcoin price after exceeding 12K
In the rise that we are witnessing, probably one of the points that has been most relevant for BTC followers is the negative correlation of this asset with traditional markets.
The situation is quite different from usual, the dollar does not seem to find support, while the main stocks do not either. However, Bitcoin is jumping up, and soon gold may do so as well.
For many analysts, there’s a good chance that much of the market will collapse at the same time, as the dollar strengthens amidst a new wave of risk aversion as happened in March.
But this doesn’t seem to be the case at the moment, and the rise in the price of Bitcoin above 12K is showing that big capital is taking advantage of this asset as a form of hedge.
What’s certain is that the current bullish behavior of the BTC is more than just a simple order entry. It’s signaling the development of a momentum that will most likely be setting new annual highs.
Number of Bitcoin addresses with more than 100 BTC reaches a 6-month high
With the recent awakening of the Bitcoin price, the 8-week EMA and 18-week SMA moving averages are showing their relevance, after they worked as support and gave way to a new upward momentum of the medium-term trend.
Now, the next target is $12,468, which is the previous annual high. Although this is an obstacle, I don’t think it is too important.
The momentum that we see developing will seek to mark a new high before retreating. Probably the relevant target will be $13,147.