FxWirePro: BTC/USD surpasses 12000 mark after breaking major trend line resistance, bias bullish, stay long

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FxWirePro: BTC/USD surpasses 12000 mark after breaking major trend line resistance, bias bullish, stay long

Wednesday, December 6, 2017 6:56 AM UTC

BTC/USD broke above a major trend line resistance and is trading at fresh all-time high at 12368 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 10666.50

Kijun Sen: 8944.27

On the topside, the pair would now run into resistance at 12435 (Upper Bollinger) and a break above would see it testing 12552 (300% retracement of 7888 and 5555.55)/12803 (200% extension of 2972.01 and 7888). Further strength would see it target 13000.

On the reverse side, support is likely to be found at 12012 (1h 10-SMA) and a break below would see it testing 11714 (2h 20-SMA)/11550 (5-DMA). Further weakness would target 11406 (2h 50-SMA)/11381 (1h 100-SMA)/ 11139 (23.6% retracement of 9000 and 11800)/10792 (10-DMA).

Momentum studies: Bias remains extremely bullish on the daily chart with no signs of reversal. The upper side is further supported by the pair’s break above the trendline resistance, the bullish bias of major moving averages and the MACD line above the signal line.

However, RSI and stochs at overbought levels call for high caution.

Call Update: We recommended going long in our previous call. Both the targets have been hit.

Recommendation: Book partial profit, stay long. Trail stop loss to 11300. TP: 12552/12800.

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