August 14, 2019
The Bitcoin price index has been volatile recently with the $12,400 resistance holding strong and forcing the bulls to slow down even if it did not make way for the bears entirely. Currently, the world’s largest cryptocurrency’s is hovering in between $10,500 and $11,000 with the bulls apparently fatigued and not in the mood for a big uptick anytime soon.
According to coinmarketcap data, the price has hovered between ~$10,000 and ~$12,220 during the last two weeks which represents a volatility of more than 20% in between. While this is not too much of a roller coaster ride when it comes to bitcoin as variations of up to 200% and even 300% are witnessed sometimes, it doesn’t tell traders the whole story.
For example in between August 5 and August 13, the price index stabilized between $11,500 and $11,800 not counting the short term increase to $12,220 in between. So, for eight days the price was stable and even looking to breach the $12,400 resistance but on August 13, the short term bears took over and have brought the price down to $10,200 and now an even deeper pullback cannot be ruled out. Overall, end to end change has been insignificant but as always it doesn't tell the entire story.
The next psychological support is at $10,000 and if breached convincingly, it can bring the bears back in control.
Notes to take from the recent activity:
The short term outlook has changed from bullish to bearish but will be invalidated if a strong rally is witnessed within the next 24 hours to $12,000.
The resistance at $12,400 and $13,500 are the ones to beat if the bulls want to take wrestle control back from the bears knocking at the doors.
The current RSI lies in oversold territory so medium gains can be witnessed in the next 24 hours.