Bitcoin may soon move to fresh all-time highs above $12,000, but signs of trader fatigue are still evident, price chart analysis suggests.

Prices of the cryptocurrency have already neared Sunday’s record high of $11,831 this morning, reaching $11,793 at around 08:00 UTC, as per CoinDesk’s Bitcoin Price Index (BPI). At time of writing, bitcoin has dropped back a little to $11,649.

Looking at CoinMarketCap data, bitcoin (BTC) has gained 4.18 percent in the last 24 hours, and 18% over the last 7 days.

Importantly, the bulls scored a brownie point yesterday by ensuring that bitcoin closed (as per UTC) above last week’s highs near $11,500. While prices did hit the new high of $11,831 Sunday, the day’s close was below previous record highs – a sign of bull market exhaustion.

Bitcoin chart

A close above last week’s high (doji candle/previous record high) indicates a continuation of the rally, indicating that bitcoin may hit fresh record highs above $12,000 in the next 24–48 hours.

Still, the odds of a pullback remain high, with the daily relative strength index (RSI) showing overbought conditions (above 70.00) for the 10th consecutive day.

4-hour chart

The above chart shows:

  • Potential double top reversal with neckline level of $10,950.
  • Of late, volumes have remained low during the rally, while bouts of sell-off have been accompanied by a big jump in volumes (marked by circles). A high volume retreat in prices indicates potential for a correction.
  • Although bitcoin’s price is forming higher lows, the RSI is losing altitude, also indicating scope for a pullback.

Formed at the top of the bull market, a double top is a bearish reversal pattern comprising two consecutive peaks that are roughly equal, with a moderate trough in-between.

A break below the neckline support ($10,950) confirms a bearish reversal. If the 4-hour candle closes below $10,950, prices may fall back to $10,100 (target as per the measured-height method).

View

Bitcoin could set fresh record highs above $12,000, as imminent BTC futures listings from CME and the CBOE are seen as opening doors for institutional investors.

However, chart studies still suggest that a healthy pullback to $10,000 is possible.

However, only an end of the day close below $10,000 (rising trendline support on the 4-hour chart) would indicate a temporary top has been made. In that scenario, prices could then test $8900-8,600 levels.

Climber on peak image via Shutterstock

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.