Analysis

Bitcoin Key Indicators Suggest A Strengthening Case For Rally Above $11.5K

Bitcoin price is holding an important support near the $ 11,230 level against the US Dollar. BTC is likely to rally above $ 11,500 as long as it is above the $ 11,000 pivot level.

  • Bitcoin started a downside correction after it failed to clear the $ 11,600 resistance zone.
  • The price is still trading well above the $ 11,000 pivot level and the 100 simple moving average (4-hours).
  • There is a declining channel or a bullish flag pattern forming with resistance near $ 11,450 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a strong upward move once it clears the main $ 11,450 and $ 11,500 resistance levels.

Bitcoin Holding Key Support

This past week, bitcoin attempted a fresh upside break above the $ 11,550 and $ 11,600 resistance levels against the US Dollar. However, the BTC/USD pair failed to gain traction above $ 11,600.

A high was formed near $ 11,627 before the price started a fresh decline. It broke the $ 11,500 support level and retested the main $ 11,200 support zone. A low is formed near $ 11,200 and the price is currently correcting higher.

There was a break above the $ 11,300 level. Bitcoin is still trading well above the $ 11,000 pivot level and the 100 simple moving average (4-hours). It surpassed the 23.6% Fib retracement level of the recent decline from the $ 11,627 high to $ 11,200 low.

Bitcoin Price

Bitcoin Price

Source: BTCUSD on TradingView.com

It seems like there is a declining channel or a bullish flag pattern forming with resistance near $ 11,450 on the 4-hours chart of the BTC/USD pair. An immediate resistance is near the $ 11,420 level since it is close to the 50% Fib retracement level of the recent decline from the $ 11,627 high to $ 11,200 low.

To start a fresh rally, the price must break the $ 11,420 level and the channel resistance. The next key resistance is near $ 11,500 level, above which the price might even surpass the $ 11,600 and $ 11,700 level. Any further gains could lead bitcoin towards the $ 12,000 resistance level.

Downsides Could Be Limited in BTC

If bitcoin fails to clear the channel resistance or $ 11,500, there is a risk of a fresh decline. The main support on the downside is near the $ 11,230 and $ 11,000 levels.

A downside break below the $ 11,230 and $ 11,200 support levels could start a sharp decline towards the $ 11,000 support (key resistance turned support).

Technical indicators

4 hours MACD – The MACD for BTC/USD is likely to move into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.

Major Support Level – $ 11,200

Major Resistance Level – $ 11,450

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Analysis – NewsBTC

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