- Bitcoin gained traction after dropping to $11,700 area.
- Bullish momentum could gather strength with a weekly close above $12,000.
Bitcoin (BTC/USD) fluctuated in a tight range a little below $12,000 during the first half of the day but came under modest bearish pressure and dropped to a daily low of $11,690. Nevertheless, bulls easily retook the control of the price action and BTC/USD was last seen gaining 0.85% on a daily basis at $11,880. Nevertheless, a decisive move above the critical $12,000 area looks unlikely in choppy weekend trading.
BTC/USD technical outlook
The RSI indicator on the daily stays very close to 70, suggesting that BTC/USD could become technically overbought if it tries to break above $12,000 before making a technical correction. On the upside, $12,325 (August 6, 2019, high) could be seen as the next target ahead of $13,195 (July 10, 2019, high).
Supports, on the other hand, are located at $11,700 (daily low), $11,500 (20-day SMA) and $11,000 (lower limit of the two-week-old range, Fibonacci 23.6% retracement of July 24 – August 2 rally).
Bitcoin daily chart