There was an upside extension above the $12,800 and $13,000 resistances in bitcoin price against the US Dollar.

The price even traded close the second bullish target of $13,200 (as discussed yesterday).

There is a major bullish trend line forming with support near $12,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).

Dips remain supported if there is a downside correction towards the $12,700 or $12,500 level.

Bitcoin price climbed further higher and broke the key $13,000 resistance against the US Dollar. BTC is currently consolidating gains and it is likely to continue higher.

Bitcoin Price Analysis

Yesterday, we saw a solid upward move in bitcoin price above the $12,000 and $12,200 resistances against the US Dollar. Later, the BTC/USD pair corrected lower from the $12,800 resistance area. It traded below the $12,500 level and tested the $12,200 support area. The bulls remained in action and the price remained supported above $12,000. Moreover, there was no close below $12,000 and the 100 hourly simple moving average.

As a result, there was a fresh increase above the $12,500 resistance level. The price gained bullish momentum and broke the $13,000 level (target discussed in yesterday’s analysis). Besides, it traded close to the second bullish target of $13,200. A new weekly high was formed at $13,152 and bitcoin price is currently correcting gains. It is trading near the $12,900 level plus the 23.6% Fib retracement level of the recent wave from the $12,147 low to $13,152 high.

On the downside, there are many supports near the $12,800 and $12,600 levels. Moreover, there is a major bullish trend line forming with support near $12,700 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the recent wave from the $12,147 low to $13,152 high is also near the $12,650 level to act as a strong support.

If there is a downside break below the $12,600 and $12,500 support levels, the price could revisit the $12,200 support area. On the upside, an initial resistance is near the $13,200 level, above which there are chances of a push towards the $13,500 level.

Looking at the chart, bitcoin price seems to be preparing for more upsides above the $13,200 level. In the short term, there could be a downside correction, but the bulls are likely to defend the $12,800 or $12,600 support area in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is currently gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level, with positive signs.

Major Support Levels – $12,800 followed by $12,600.

Major Resistance Levels – $13,150, $13,200 and $13,500.