Bitcoin price analysis: BTC/USD unstoppable as $12,500 gives in

Bitcoin’s upside momentum is gaining traction as a break above $12,000 serves as an upside catalyst for the first digital asset. At the time of writing, BTC/USD is changing hands at $12,550 amid strong bullish sentiments and growing trading volumes. Considering that the price growth is accompanied by increased trading volumes, one might suggest that the trend will gain traction.

Many experts believe that at this stage Bitcoin (BTC) is driven by FOMO, while the market repeats the situation of late 2017. 

The excitement around Facebook’s Libra coin and potential crypto ban in India are also cited as major catalysts to the Bitcoin’s rally.

Bitcoin's technical picture

Looking technically, Bitcoin (BTC) has been growing strongly for eight days in succession, which is the longest period of uninterrupted growth since December 2017. As BTC/USD is trying to take out a new barrier at $12,500. Once it is out of the way, the next bullish target of $13,000 will quickly come into view.

However, it should be noted that the coin is grossly overbought on all timeframes, which makes it vulnerable to the downside correction with the first support at $12,000 strengthened by the upper boundary of 1-day Bollinger Band. A sustainable move below this handle will open up the way towards the next bearish aim of $11,165 (the upper boundary of 1-week Bollinger Band and the middle line of 4-hour Bollinger Band).

BTC/USD, 1-day chart