- Bitcoin (BTC) rose above $12,900 for the first time in over 17 months backed by consistent levels of volume.
- Recent price action could set scope for $13,700 in the coming day on the back of strong bullish momentum.
- The hourly chart reveals extreme levels of volatility presenting harsh trading conditions for the average trader.
Bitcoin has risen above $12,900 for the first time since Jan. 21, 2018, touching a new high for 2019 at $12,919, according to CoinDesk’s BPI data.
On June 26 at 03:00 UTC, Bitcoin broke out from a bullish pattern, rising in quick succession above $12,000 on strong momentum and high volatility. As of press time, the price has dropped back to above $12,500.
The last time bitcoin (BTC) changed hands above $12,000 in January 2018, prices were on the way down, amid the beginnings of a down trending bear market. This time, things are much different.
BTC continues to post impressive results up 40 percent in the month of June alone, while its year-to-year performance is up by more than 250 percent, according to data at Messari.io.
The hourly chart reveals BTC’s recent movements in a bullish light as each breakout was backed by a strong showing of growing volume.
As can be seen above, prices broke from an ascending triangle (typically bullish in nature) on June 25 at 21:00 UTC backed by consistent levels of growing volume, legitimizing the move on its rise northward.
A secondary ascending triangle breakout brought prices well above $12,000 and continues to eye off $13,100 in the immediate short-term, as per Fibonacci Extension theory.
The recent volatility may also see a short-term move to retest $12,500 given the levels of liquidity currently entering and exiting the markets in rapid succession.
The weekly chart also reveals some interesting insights, detailing key levels of support and resistance at $11,500 and $13,700 respectively, whereby a close above or below those levels would dictate the direction of the trend for either a continuation or a pullback in its price.
In addition, there has been a strong backing of weekly volume since the new year began, with the exception given to March, that saw below-average volume traded over the month. This is a good sign for the bulls as the moves are backed by strong liquidity and buying pressure.
If momentum and market conditions maintain their current course, BTC could set its sights on $13,500 resistance in the coming days.
Should prices fall below $11,500 then consider a retest of the $11,000 psychological support zone, overall the trend remains very bullish.
Disclosure: The author holds no cryptocurrency at the time of writing.