Bitcoin price continues to meet resistance at the $12K level, will bulls break through it before the weekly close?
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Bitcoin price is making a strong push toward $12,000 with just 24-hours before the weekly close occurs
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Despite multiple rejections at the $12K mark, BTC continues to make higher lows and traders are buying dips at underlying support levels
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Chainlink reached a new all-time high at $19.80 and Ether is struggling to push above $430
Cryptocurrency daily market performance snapshot. Source: Coin360
Typically, for Bitcoin (BTC), weekends are marked by reduced trading volume as day traders take a break and the CME Bitcoin markets are closed.
Experienced traders will also know that exchange order books thin out during the weekend, providing opportune moments for clever Bitcoin whales to exploit these gaps and sway the price through whipsaw volatility.
This Saturday things are different as the scenarios mentioned above are not deterring traders from a renewed push to the $12K mark.
If the current move to the key level fails, it would be the second time in a week and for some analysts multiple rejections at a key resistance level can be a bearish signal.
On the other hand, there are also an equal number of traders who will argue that multiple retests of a key resistance level heighten the chance that it will be breached on future attempts.
BTC/USDT daily chart. Source: TradingView
A few positives for Bitcoin price are: the daily chart continues to show a pattern of higher lows, the RSI is in bullish territory at 66, and traders show strong interest in buying into each dip, as shown by the rising purchasing volume on the daily timeframe.
In the event that traders can manage a 4-hour close above $12,000, Bitcoin will need to pursue a daily higher high above $12,068 and $12,123 then things will get quite interesting.
For the time being, we can see that the price is simply compressing into a tighter range within the pennant and drop the lower trendline should be supported by the high volume VPVR node extending from $11,730 to $11,500.
Typically a drop from such a pennant would warrant some concern but given buyer’s demonstrated interest in buying since July 28th and further back to March 12, it seems bulls will eventually have their way by flipping $12K to support in the short-term.
Bitcoin daily price chart. Source: Coin360
As Bitcoin fought to retake the $12K level, the performance from altcoins has been a bit of a mixed bag.
Chainlink (LINK) continues to lead the market, rallying 12% to reach a new all-time high at $19.80. Ether (ETH) appears to be losing steam as it pulled back 2.2% and struggles to reclaim the $340 level.
Meanwhile, EOS finally managed to break above a key resistance to rally more than 18% and currently trades for $3.75
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $373.4 billion and Bitcoin’s dominance index is currently at 58.8%.
