Bitcoin is Gaining Momentum, But This Resistance Presents A Major Challenge
Bitcoin price is rising steadily above the $10,800 resistance against the US Dollar. However, BTC might face a strong resistance near the $11,000 and $11,100 levels in the near term.
- Bitcoin started a decent recovery wave above the $10,550 and $10,650 resistance levels.
- The price is now trading above the $10,800 resistance and the 100 hourly simple moving average.
- There was a break above a declining channel with resistance near $10,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to face a strong resistance near the $11,000 region.
Bitcoin Price is Rising Steadily
After a close above the $10,550 resistance, bitcoin price started following a positive path against the US Dollar. BTC even cleared the $10,650 and $10,700 levels to continue higher.
The price gained pace and cleared the $10,800 resistance. During the recent increase, there was a break above a declining channel with resistance near $10,750 on the hourly chart of the BTC/USD pair. It traded to a new weekly high at $10,945 and settled well above the 100 hourly simple moving average.
Bitcoin price is currently correcting lower and trading near $10,900. An initial support is near the $10,860 level or the 23.6% Fib retracement level of the recent rise from the $10,608 low to $10,945 high.
Bitcoin price surpasses $10,800. Source: TradingView.com
The first major support is near the $10,800 and $10,775 levels (the recent breakout zone and previous resistance). It is close to the 50% Fib retracement level of the recent rise from the $10,608 low to $10,945 high.
On the upside, the first major hurdle for the bulls is near the $11,000. A successful close above the $11,000 barrier could lead the price towards the next breakout zone at $11,200.
Downsides Could Be Limited in BTC
If bitcoin fails to continue higher above $10,950 and $11,000, it could start a downside correction. The first major support is seen near the $10,800 level.
The main support is now forming near the $10,650 level and the 100 hourly SMA, below which there is a risk of more downsides towards the $10,200 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower and it is above the 60 level.
Major Support Levels – $10,800, followed by $10,650.
Major Resistance Levels – $10,950, $11,000 and $11,200.
OhNoCrypto
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Aayush Jindal, @KhareemSudlow