In the past sessions, we have been witnessing positive moves in the BTC price. The chances of an upside break above $12,000 were highlighted in yesterday’s discussion. Indeed, the BTC/USD pair did gain momentum and surpassed the $11,850 resistance. It paved way for an upside break above the $12,000 resistance level. Moreover, the price broke the $12,200 resistance and settled well above the 100 hourly simple moving average (SMA).
The BTC price traded close to the $12,500 resistance and it is currently making a downside correction. A new monthly high is formed close to $12,479 and the price is now trading below $12,400. It is also testing the 23.6% Fib retracement level of the recent upward move from the $11,785 low to $12,479 high.
More importantly, it seems like there is a crucial bullish flag pattern forming on the hourly chart of the BTC/USD pair, with resistance near $12,380. The hourly MACD for the pair is slowly losing pace in the bullish zone. Its hourly Relative Strength Index (RSI) is currently correcting lower towards the 50 level.
On the upside, the price could start a fresh increase if it clears the flag resistance and the $12,400 level. An immediate resistance for the bulls is close to the $12,500 level. A successful close above the $12,500 level might pave way for a sharp rise towards the $13,000 level in the coming sessions.
Conversely, if BTC fails to clear the $12,400 resistance, there might be a downside correction. On the downside, the main support is now forming near the $12,120 level. It is also close to the 50% Fib retracement level of the recent upward move from the $11,785 low to $12,479 high. The next major support for the bulls is seen near the $12,100 level. A possible buy zone could be near the $12,000 level, below which the price might decline towards the $11,900 level or the 100 hourly SMA.