In the longer-term, the next target for bulls comes at a one-year high of $12,300
Bitcoin price continues its bullish attempts on Thursday after a rise by over 6% seen yesterday. The leading cryptocurrency by market capitalization has faced the intermediate resistance around $11,800, a break above which could open the way towards the $12,000 psychological level.
The fact that BTC shrugged off the recent weakness confirms that a plunge seen on August 2 failed to deter bulls and spoil the sentiment in the cryptocurrency markets in general. At this stage, however, bitcoin may lack the bullish momentum to make a decisive break above $11,800, so there is a risk of a downside correction in the near term.
The daily RSI has entered the overbought territory and shows no bias, which implies a potential consolation and directionless trading around the current levels. At the time of writing, bitcoin was changing hands just above the opening levels, suggesting the coin could finish the day in the red. The longer the prices stay below the mentioned intermediate resistance, the higher is the possibility of a downside correction.
In this scenario, BTCUSD will encounter the initial support around $11,500 while the key barrier for bears arrives at $11,000. On the four-hour timeframes, bitcoin is holding above the $11,300 area, where the 50-SMA arrives. In the short term, the prices need to stay above this moving average in order to avoid a deeper retreat. The RSI is pointing slightly upwards and hasn’t entered the overbought territory just yet. As such, fresh upside attempts are possible in the near term.
In a wider picture, the digital currency number one continues to target the $12,000 handle that capped the recent strong rally and triggered a massive sell-off. So, to break above this level, bitcoin may need the additional catalyst. In the longer-term, the next target for bulls comes at a one-year high of around $12,300.
