- Bitcoin price prediction remains firmly in the bullish region as price flirts with $13,000
- The sell-off in US Dollar is triggering big moves in gold and BTC/USD pair
- Bitcoin has closed above multiple crucial resistances between $12,430 to $12,878
- Institutional buying and long-term investors are joining the BTC bull league
Bitcoin price prediction – Bulls accumulate near fresh 2020 highs at $12,980
As the sell-off in US Dollar continues, the global markets are in a wait-and-watch mode. Nevertheless, gold and Bitcoin are being watched with much enthusiasm by the investors looking for shelter if things go haywire. The upcoming US Presidential elections are a cause for panic, and world markets are working on thin liquidity as the voting day approaches.
Gold is approaching another breakout region. The increasing correlation between BTC and gold means that traders should expect big moves in the coming days. It seems that the overall bullish theme in both safe-haven assets will continue for some more weeks. BTC/USD pair is holding above $12,800 resistance and looking to break past $13,000 to pursue fresh new annual highs on the back of a positive Bitcoin price prediction.
Bitcoin price movement in the last 4 hours reflects a strong bullish hold
The Bitcoin price prediction continues to be driven by underlying bullish buying activity. The overstretched Bollinger Bands have begun to cool down and approaching contraction. This is a good sign since bulls will book profit, and then accumulation will start all over once again.
Quick profit booking over the weekend can trigger some wild moves, but the $12,500 fortress will hold strong. The performance of USD-denominated assets and gold will certainly have an impact on the BTC/USD pair. Of course, BTC price action in the next few days will be governed by the US Presidential election theme. Throughout the summer, both gold and Bitcoin have displayed strong safe-haven characteristics pushing them to new all-time highs.
BTC/USD 4-hour chart – All resistances demolished in pursuit of $14,000
The 4-hour BTC/USD chart shows that the pair has demolished every major resistance level to maintain the price above $12,800. The contracting Bollinger Bands will only stabilize the price further on the hourly timeframe. In its battle against higher resistances, the crypto king will look towards touching the $14,000 resistance in a bid to post fresh new 2020 highs.
The broad resistance band in the 12166-12430 level is now comfortably underneath the price. This level contains long-term Fibonacci resistances, which have been demolished now as the price close above the $12,763 mark for two straight days. The Relative Strength Index is still in the bullish territory but now looks muted in agreement with contracting Bollinger Bands.
Earlier in August, the price was rejected from $12,473 as Fibonacci Resistances stopped the oncoming rally dead in its tracks. Today, the inflated volume and liquidity are ready to charge ahead. Optimum risk management by the bulls will surely take the price further up from the $12,989 level. Traders would look for more positive signs before embarking on a fresh Bitcoin exposure.
Technical indicators are lining up nicely to support a BTC Bullish wave
As the price rests comfortably above the $12,450 level, bulls look all set to use this stagnation phase for more accumulation. The stopover near the 52-week high displays the underlying strength of this bullish Bitcoin price prediction.
The 20-day EMA rests around $11,671 has an upward slope to support the bulls underneath. Then, the 50-day moving average at $10,940 is slowly waking up to look upwards. The RSI reading on the hourly charts shows 81, which is a sign of concern. But the weekend’s thin liquidity can help cool down RSI in case of bears decide to wait and watch.
As the price repeatedly flirts with $13,000, the bulls are in no hurry to book full profits. The inability of the pair to fall rapidly below the support shows there’s no selling at higher levels. If the BTC/USD pair does not break $12,450, there’s a high chance that the pair will breach $14,000 to post fresh new highs. A contrarian Bitcoin price prediction states that if the price action falters and touches the $12,540 range, the selling action can intensify, and the pair can reach lower support levels proving that the current rally was a bear trap.
Bitcoin price prediction – All eyes on US Presidential elections
The next leg of the rally would be powered by pro-traders instead of day traders. Only if institutional demand pics up and more fundamentals line up will the Bitcoin price prediction pick up the pace. Bulls must maintain the buying momentum at higher levels for positive Bitcoin price prediction.
So far, the exchange data signals that pro-traders are still waiting for more signs to enter the current rally. Additionally, the CME gap data points to a slow but steady rise in Bitcoin futures, signaling that the demand is picking up slowly. Remember, large institutional investors do not pursue an asset due to ‘FOMO’ but take a more risk-averse approach featuring long-term investment potential. The PayPal news has also played its part in fuelling the broad crypto rally this past week.
Currently, the price rests around $12,880 levels. The flat candles on the hourly chart show that stagnation has taken over the price action. The bulls may be relaxing, but they are certainly not exhausted as the pair is in no mood to test lower support levels at $12,460. The thin liquidity over the weekend can trigger a massive move only if the bulls are willing to book profits on a large scale around the $12,980 mark.
For now, Bitcoin price prediction remains firmly entrenched in the bullish region. Next week will be full of volatility as bulls look at the oncoming US Presidential election.
Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.