Analyst: a breakdown of $ 12,000 in low volumes may be a bull trap

The bitcoin price may soon test resistance at around $ 12,061, however, a breakdown of this technical level with low trading volumes may turn out to be a bull trap, says Oinkar Godboul, an analyst at CoinDesk Markets.

So, today, July 8, the price of Bitcoin on the hourly chart showed a sharp increase, supported by high trading volumes. Thus, a breakout of $ 12,061 may indicate a continuation of recovery after reaching a local minimum of $ 9,614 (July 2), as well as the possibility of a complete reversal of the bearish pattern under the condition of high volumes.

In this case, on the daily chart you can expect to test the mark at $ 13,880, says Godboul. Nevertheless, on the weekly chart, the RSI indicator is still in the overbought zone, which, according to the analyst, indicates a high probability of a downward price movement, despite the positive dynamics on younger timeframes.

Some analysts claim that the bitcoin hashrate update of the historical maximum speaks in favor of further price growth, however there is no consensus in the community regarding the correlation of these indicators.

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