Bitcoin Price Analysis: BTC/USD closes in on $12,000 after Friday’s consolidation

• Bitcoin is posting modest daily gains on Saturday.
• A weekly close above $12,000 could open the door for further gains.
• Daily RSI stays a little below the overbought area.

After climbing above $12,000 for the first time in nearly a year, Bitcoin (BTC/USD) formed a consolidation channel and has been fluctuating in that channel for the past two weeks. Following a drop to the lower range of that channel near $11,000, BTC/USD staged a rebound and is now, once again, approaching $12,000. As of writing, Bitcoin was up 1.35% on a daily basis at $11,940.

BTC/USD technical outlook

On the daily chart, the Relative Strength Index is staying within a touching distance of 70, suggesting that the pair is likely to become overbought when it reaches the 12-month high it set at $12,112 on August 2nd. However, if Bitcoin closes the week above $12,000, buyers could look to remain in control of the price action even if the pair stages a technical correction.

Above $12,100, $12,325 (August 6, 2019, high) aligns as the initial resistance ahead of $13,195 (July 10, 2019, high). On the downside, $11,500 (20-day SMA) is the first support before $11,000 (lower limit of two-week-old range, Fibonacci 23.6% retracement of July 24 – August 2 rally). 

Additional levels to watch for

BTC/USD daily chart