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The Bitcoin bulls are back, pumping the price above the $11,500 weekly resistance level. I talked about the importance of this level in a previous analysis titled “Is This A Bull Trap? Bitcoin Just Hit Weekly Resistance. What Next?“
However, this bullish move as made a lot of crypto traders worried that the Bitcoin price pump might actually be a price fakeout and not a true breakout.
Well, I will be analyzing the Bitcoin chart and giving you my honest opinion about what I think about the move. I will also be pointing out the important levels I will be watching out for as well as my profit targets if the move continues higher.
Bitcoin Trading On Low Volume
One of the most important indicators I keep an eye on when it comes to decerning a price breakout from a fakeout is the volume indicator.
With this indicator, I can get a feel of the number of traders actually interested in pushing the price higher or lower at any time. And right now, that number is really low.
This means that there is a high probability that we might not see a follow-through in the bullish momentum in the Bitcoin price in the coming days.
And therefore it is very important you keep an eye on your open position in case we see a pullback in the coming days.
However, if the Bitcoin price decides to keep heading higher, then I expect to see the bullish trading volume increase as momentum picks up.
Important Levels I am Watching For.
There are two important levels I am currently watching to see how the Bitcoin price interacts with.
The First Is The $12,100 Previous High.
The Bitcoin price has been unable to break through this region and make a new high, meaning that we might see a lot of selling pressure begin to reenter the markets from that price level.
If this happens, we might see the Bitcoin price crash back into the rising triangle it was trading in.
However, if the price breaks through that $12,100 then there is a very high probability the bullish momentum will push the Bitcoin price further in the coming days.
My price target for the upside move is the $12,875 price region.
The Second Important Level I Am Watching Is The Base Of The Ascending Channel
If we see a price crash in the coming days, the most important level to watch out for is the base of the ascending channel.
A break of this support channel will see more weakness coming into the Bitcoin price and a larger pullback or crash lower to the $10,000 or even $9,000 region.
For a list of the top best Altcoins to put on your watch list and trade during this coming bull run, check out my Top 25 Cryptocurrencies by Market Capitalization
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.
