Will Bitcoin Face a Notable Correction Before Soaring Above $12k?
Bitcoin (BTC), at the time of penning down this analysis, was seen maintaining its stance above $11k and even beyond $11.5k at $11,652. With a completely flat & consolidating momentum below $9.5k, BTC rose above the major resistance above $10k towards the end of the previous month.
However, earlier when the Bitcoin price was consolidating below $9.5k for the longest time, major altcoins were seen skyrocketing. However, this time when Bitcoin unleashed the consolidation, it breached above the major resistance at $10k and eventually rose above $11k as well.
#Bitcoin is the greatest thing since sliced bread.
— Cameron Winklevoss (@winklevoss) August 7, 2020
Bitcoin has been often compared with Gold and Silver, and in this regard, Gold has also hit an All-time High recently but recently has nosedived by approximately $40. Moreover, BTC is also believed to be superior in comparison to the standard reserve currency, the US Dollar.
However, just when Dollar was depreciated during the massive sell-off, Bitcoin held strong support and yet another quantitative easing by printing unlimited bills. Bitcoin, on the other hand, with limited supply, has not led to manipulations even during this Pandemic.
![Bitcoin News](/wp-content/uploads/2020/08/Bitcoin-Price-Chart.jpg.webp)
BTC price, towards the end of the previous month, was seen breaking the major resistance at $10k after intermittent, volatile breakouts. However, with approximately two days, Bitcoin crossed above $11k price area, and since then it has been trading above the same. Bitcoin has reclaimed a short-term height until $11.9k so far after a momentary bullish candlewick rise above $12k just at the onset of the ongoing month.
In comparison to the recent pullback below the intraday highs at $11.9k, BTC is now trading around $11.6k with a bearish crossover on the MACD chart due to correction. The volatile yet a winning nature is likely to lead to yet another notable correction before a persistent trade above $12k and beyond. As per the historic trends, a correction is holding a greater possibility in the short-term for long-term sustainable prices.
Bitcoin, at present, holds support from SMA50 & SMA200 around $11.4k and $10.3k, respectively. With intermittent bearish dips, the price trend of BTC/USD is hitting the lower 20-day Band but holds no prospects of an unprecedented breakout in the near-term.
The MACD chart holds a bearish divergence after the recent intraday correction. The RSI is at 52.56 and withholds no trading extremities.