Analyst explains what keeps Bitcoin from consolidating above $14,000

The leading RoboForex analyst Dmitry Gurkovsky discusses possible future scenarios for Bitcoin’s price movement.

This week Bitcoin again breached the $14,000 level, but buyers have yet to sustain above this level. A rise beyond significant resistance may be hindered by the U.S. presidential elections: the reaction to this event is especially pronounced in the currency market, where strong moves occur in both directions.

Among the positive signs that continue to support the bulls is that the price is making new highs, and the new low after a decline is higher than the previous one, confirming the development of an upward impulse. A downturn in the uptrend would only be discussed once the price makes a new low.

At the time of writing there is a possibility of renewed upside as the RSI indicator slips from overbought territory. Earlier this indicator rose to 80 (overbought zone), which triggered a minor correction on the daily chart.

A more conservative scenario would be a rebound from the RSI support line, which would be a good signal in favour of renewed growth. In that case, one should not rule out testing the nearby support region at around $12,665.

Daily BTC/USD chart from TradingView (Bitstamp).

On the 4-hour chart the RSI values also cling to the trend line and do not fall below, signaling the bulls’ strength. The price also rebounds from the area between the moving averages, another sign of bullish impulse. Here we see participants still aiming to consolidate above the $14,000 level and move higher.

A positive scenario could be invalidated by a break of the $12,665 level, when the lower boundary of the rising channel is overcome. In such a scenario, one should consider the continuation of the correction to the $11,840 level.

4-hour BTC/USD chart from TradingView (Bitstamp).

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