Bitcoin Technical Analysis February 12: Reclaim the $69,000 Support – or confirm the Breakdown?

The Bitcoin price is chopping sideways after falling back under the $69,000 major horizontal support. Can the bulls reclaim this level, or will the bears confirm it as resistance?

Small breakout for $BTC price

Source: TradingView

The 4-hour time frame illustrates how the $BTC price is respecting the trendlines that continue out of the falling wedge pattern. Unfortunately, from the bulls’ perspective, the price is still chopping around below the major $69,000 level. This will need to be reclaimed if Bitcoin is not to descend further into a bear market.

Currently, the price looks to have broken out beyond a small descending trendline, and is attempting to confirm the breakout. This could augur the next little leg up to that major resistance again. 

What goes down must come back up

Source: TradingView

The daily chart gives a great perspective on how vertiginous the fall out of the bear flag was. This was a full-on plunge of 32% down to almost $60,000. In fact, if one looks back at other bear markets, the fall from the top is never this quick. 

If the price was going in the opposite direction, chart analysts would be shouting to the rooftops that a correction was imminent. If this is the case going up, it can most certainly also be the case coming down. A 52% fall from the all-time high down to almost $60,000 in the space of only 4 months is quite some reversal. Could the market be due quite a long period of consolidation in order to digest this move?

A bottom?

Source: TradingView

Zooming out into the weekly time frame helps to put more of a calming view on things, at least from the perspective of the bulls. The 200-week simple moving average is a hugely important bull market support, and it can be seen that this certainly provided that support when the price crashed down to $60,000.

In addition, for the $BTC price to bounce so strongly from that low gives the idea that perhaps the real bottom at $69,000 was overshot, and buyers stepped in en masse. 

Finally, the Stochastic RSI and the RSI are screaming bottoms. The indicators still have to turn around and start heading back up, and until they do, there is likely to be more chopping back and forth. That said, a real bottom looks to be in, or at least forming. Could a proper rally back to the upside be the next big move?

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.