On July 10, 2019, the Bitcoin price reached a high of $13,174. A rapid decrease ensued. The next day, the BTC price briefly reached values below $11,000. Shortly after, an upward move began.

At the time of writing, it was trading near $11,500.

Where will it go next? Keep reading below in order to find out.

For our previous analysis, click here.

Bitcoin Price: Trends and Highlights for July 12

  • BTC/USD is trading inside a descending wedge.
  • There is bullish divergence developing in the MACD and the RSI.
  • There is support near $11,000.
  • There is resistance near $12,100.

BTC Price Support

After reaching the high on July 10, the BTC price began to decrease.

This decrease continued until the price reached a low of  $11,000. Afterward, BTC began an upward move.

The move created a long lower wick, indicating that there is buying pressure around that area.

The Bitcoin price has acted in a similar manner before, more specifically on July 3 and 6.

Once it reached the $11,000 area, upward moves began each time.

Therefore, we can conclude that we have a support area around $11,000.

Descending Wedge

A look at the shorter-term time-frame shows that the BTC price has been trading inside a descending wedge since July 11.

At the time of writing, it was trading right on the resistance line, possibly making a breakout attempt.

A look at the RSI and the MACD suggests that it is likely that it will do so.

Both indicators have been generating significant bullish divergence since the beginning of the wedge.

The fact that the descending wedge is a bullish pattern and the divergence is present in both indicators confirms its validity.

The use of these indicators and the creation of a bullish pattern makes it likely that the price will soon break out.

Reversal

If the price breaks out, the closest resistance area is outlined below.

The closest resistance area is found near $12,100. This area coincides with the beginning of the wedge.

According to our analysis, it is likely that the price will reach it.

Summary

The BTC suffered a flash crash on July 10.

After finding support at $11,000, it began an upward move.

It is currently in the process of breaking out from a descending wedge.

According to our analysis, it is likely that it will reach values close to $12,000.

Do you think the BTC price will hit $12,000? Let us know in the comments below.


Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

Images are courtesy of Shutterstock, TradingView.

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