Bitcoin Price Analysis: Only $1K To 2020 High – Can BTC Reclaim $12,500 Soon?

Bitcoin took a break from trading during the month of September, with relatively low volatility. As shown on the following 4-hour chart, the marked symmetrical triangle was basically the story of September: Started with a massive dump and a slow consolidation, since then, around $10,600.

As can be seen below, Thursday signaled a breakout – in favor of the Bulls. Since breaking the triangle at $10.8K, we saw a healthy consolidation and finally a breakout of the $11-11.2K area, which was the most recent high.

So far, as writing these lines, today’s daily candle marked $11,500 as the daily high. This is the first resistance to watch.

However, after three consecutive green days, Bitcoin might rest a bit. In case of a correction, the $11,000 – $11,2000 support would consider a very healthy retest. A daily close below $11K might change things in favor of the bears.

The Fundamentals and The Technicals

As we know, Bitcoin has been recently showing a positive correlation with Gold and the equity markets. The past days, especially Thursday and Friday, yielded 2-3% gains across major U.S. markets indexes. Shortly after Friday’s Wall Street close – it was Bitcoin’s turn to show its capabilities.

From a technical point of view, the daily RSI is now at 64-65, its highest point since August 17, 2020. Despite the excitement, the trading volume is still not significant.

BTC Levels to Watch in The Short-Term

As mentioned above, Bitcoin is now facing $11,400 – $11,500 as the first area of resistance. If BTC manages to break above, then $11,800 should be a weak resistance before the $12,000 – $12,100 resistance area.

From below, the first level of support now becomes $11,200, followed by $11,000 and $10,800.

Total Market Cap: $366 billion

Bitcoin Market Cap: $210 billion

BTC Dominance Index: 57.5%

*Data by CoinGecko