• There were continuing gains in bitcoin price above the $13,000 resistance against the US Dollar.
• The price traded close to the $14,000 level and later started a sharp bearish correction.
• There is a key breakout pattern forming with resistance near $12,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely to remain supported and it could climb higher once again above the $13,000 barrier.

Bitcoin price is trading nicely above the $11,500 and $12,200 support levels against the US Dollar. BTC price is currently consolidating and seems to be preparing for the next break.

Bitcoin Price Analysis

Yesterday, there was a sharp increase in bitcoin above the $12,000 target against the US Dollar. The BTC/USD pair even broke the key $13,000 barrier and settled well above the 100 hourly simple moving average. Finally, there was a solid run towards the $14,000 level. A new 2019 high was formed near $13,857 before the price started a short term bearish correction.

There was a sharp dip in bitcoin below the $13,000 and $12,400 support levels. Moreover, there was a break below the $12,000 pivot level and the price traded close to the 100 hourly simple moving average. However, the $11,550 level acted as a strong support. Besides, the price stayed nicely above a major bullish trend line with support at $11,850 on the hourly chart.

BTC is currently correcting higher and is trading above $12,250. It settled above the $12,000 pivot level and traded above the 50% Fib retracement level of the last decline from the $13,857 swing high to $11,539 low. There was a spike above the $13,000 level, but the $13,300 level acted as a resistance. Moreover, the 76.4% Fib retracement level of the last decline from the $13,857 swing high to $11,539 low acted as a hurdle.

At the outset, there is a key breakout pattern forming with resistance near $12,950 on the hourly chart of the BTC/USD pair. If there is an upside break, the price might start a fresh increase towards $13,000 and $14,000 in the near term. If not, there is a risk of another drop towards the $12,000 or $11,850 support before a fresh increase.

Looking at the chart, bitcoin price is clearly correcting recent gains and is trading above the $12,000 pivot level. As long as there is no daily close below $11,500, the price remains well supported for more gains.

Technical indicators:

Hourly MACD – The MACD is currently losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level, with a bearish angle.

Major Support Levels – $12,200 followed by $12,000.

Major Resistance Levels – $13,000, $13,300 and $13,800.

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