Bitcoin’s (BTC) price needs to break above $12,061 to mitigate bearish pressure.

The top cryptocurrency by market value is currently trading at $11,200 on Bitstamp, representing a 5 percent drop on a 24-hour basis.

The price drop contradicts the bullish picture painted by technical charts – the hourly chart was reporting a high-volume bullish breakout in the European trading hours yesterday.

Further, some observers called a bull revival following Tuesday’s sharp recovery from $9,600. For instance, renowned cryptocurrency trader and analyst Josh Rager tweeted Wednesday that BTC is looking “extremely bullish.”

Overall, BTC was looking primed for a rally to key resistance at $12,448 yesterday. Instead, prices topped out at $12,061 and fell back to $11,800 earlier today, charting a bearish lower-high pattern.

As a result, a high-volume break above $12,061 is needed to revive the bullish view.

4-hour chart

The falling channel breakout confirmed July 3 ended up creating a second recent bearish lower high at $12,061; the first created June 28 at $12,448.

The failure to post big gains above $12,000 could be associated with the fact that buy volumes (green bars) remained low even after the channel breakout.

A break above $12,061 would revive the bullish view put forward by the bearish channel breakout and open the doors to $13,880.

The move above the latest bearish low, however, needs to be backed by a surge in volumes.

Daily chart

The 5 percent drop seen overnight took the shine off the bullish hammer reversal seen in the previous two days.

That said, prices are still holding above $10,830 – the low of Tuesday’s bullish “marubozu” candle – a bullish continuation candle, which has little or no upper and lower shadows.

So, the probability of BTC invalidating the bearish lower-high pattern with a high-volume move above $12,061 is still high.

A break below $10,830 would shift risk in favor of a drop to Tuesday’s low of $9,614.

Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither atelexchnage.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

At Altecho Trading and Exchange Limited- ATEL, we give you news, opinions, advice and research on Crypto-currency (eCurrency, digital currency), computer/general security issues and the latest internet threats.

Credit: Omkar Godbole +Atel