Bitcoin extends above $12,000. What next?

Technical Analysis

Author: Greg Michalowski | bitcoin

Reaches a high or $12,224.13 (so far)...

The price of bitcoin has cracked the $12,000 level (for the first time) and extended up to a high of $12,224.13 - so far at least.


Looking at the 5- minute chart above,the digital currency reached a high of $11,845.33 on Friday, then tumbled around 20% to a low of $10,549.   

The rebound on Tuesday reached a new high of $11,864.91, then stayed below the peaks for the rest of the day.

Although a ceiling was holding, the good news for the bulls is the corrections were at higher levels and could not muster much selling momentum below the 200 bar MA (green line in the chart above). The lows were testing, but not breaking (hard at least).

Today, the price was able to get above the ceiling area....stall, and then it took off.  The dam was broken. The price cracked the $12,000 level.

What next?

Bitcoin will continue to run higher as long as the technicals from the price action, remain bullish.  The buyers are in control.  

What would turn the tide around - even a little bit? 

Looking at the run up today (see chart below) the low came in around $11,696. The high reached $12,224. The midpoint of that move comes in at $11,960. The 38.2% of the run higher comes in at $12,022.  Stay above the 38.2-50% retracement area, keeps the bulls fully in control. Move below and the price break above the $12,000 is also failing.   For traders in the cryptocurrency, that would be close risk for the buyers now. 

What about the upside?  Bitcoin seems to measured by $1000 increments. Do I hear a run toward $13,000?
 

The bitcoin train continues to race higher and higher. There are spurt and stops. There can be 20% corrections too. However, if you pay attention to the price action and clues from the tools, risk can be controlled.