Bitcoin survived a tough weekend to keep dreams of pushing past the $12,000 resistance level alive, following an $895 reversal over the past 48 hours. As we predicted Friday, the price took a negative turn, dropping as low as $11,080 Sunday, but a swift rebound took the price right back up to $11,590 at the weekly close, showing that the desire to buy is still there.
Building a Platform for $12,000?
The price action late in the week leaves us in an interesting situation. Technically speaking we could have expected more downside action in the last two weeks given the parabolic rise BTC enjoyed between April and June, but the price has remained above $11,000 for some time now, suggesting a platform may be being built for a new assault on all-time highs. Usually, after a parabolic run an asset sees a swift fall back, but BTC has instead been ranging just a few percent off the recent high, which could be very good news indeed.
MACD Suggests Reversal Incoming
A possible fly in the ointment, however, is the fact that the weekly MACD, which crossed bullish in February, has now levelled off and is in danger of curving back downwards again, unless we see positive action within the next 1-2 weeks. A bearish cross like this was last seen in February 2018 a few weeks after BTC hit $20k, and we don’t need to tell you what that led to. The current period of indecision has led to some opposing ideas on BTC’s next move, with some seeing this as consolidation before a move up and others seeing the drops as signs that BTC is running out of steam:
— MUROCRYPTO (@MuroCrypto) August 12, 2019
Seen this $BTC setup a fair few times during this run
>Break down below pivot/floor
>Collect long stops (normalize funding too)
>Chop sideways (reaccum) below breakdown
>Mark up pic.twitter.com/cKkZttQEb2
— BillGK (@BillGK_Crypto) August 12, 2019
Alts Give Cause for Optimism
Alts fared surprisingly well with BTC’s negative price action over the weekend, with many falling less in dollar terms and some, such as DENT, LUN, and MATIC, making double-digit gains against the BTC pair. While this is not enough to declare an alt season, it does show that alts are becoming more resistant to BTC’s movements and that, barring a major downward move from BTC, there could well be some nice setups coming soon.