Bitcoin Price Holds Strong Above $10,800: A Firm Case for Upside
Bitcoin price climbed further higher above the $11,000 resistance against the US Dollar. BTC is currently correcting gains, but dips are likely to remain supported near $10,800.
- Bitcoin extended its upward move above the $10,900 and $11,000 resistance levels.
- The price is now forming a strong support above $10,800 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $10,840 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to resume its upside as long as it is above $10,800 and the 100 hourly SMA.
Bitcoin Price is Showing Positive Signs
After a successful close above the $10,800 level, bitcoin price extended its rise against the US Dollar. BTC broke the key $11,000 resistance level and settled well above the 100 hourly simple moving average.
The price traded to a new weekly high at $11,102 and recently started a downside correction. It traded below the $11,000 level and also broke the 23.6% Fib retracement level of the recent upward move from the $10.675 low to $11,102 high.
Bitcoin is now approaching the $10,880 support zone since it is close to the 50% Fib retracement level of the recent upward move from the $10.675 low to $11,102 high. There is also a major bullish trend line forming with support near $10,840 on the hourly chart of the BTC/USD pair.
Bitcoin price spikes above $11,000. Source: TradingView.com
As long as the price is above the trend line support, it could resume its upward move above the $11,000 resistance. The first resistance is near the $11,100 level, above which the bulls are likely to aim more upsides towards the $11,500 and $11,600 levels in the near term.
Dips Supported in BTC?
If bitcoin fails to resume its upward move above the $11,000 level, it could further correct lower. An initial support on the downside is near the trend line at $10,840.
A downside break below the trend line support may perhaps start an extended decline towards the $10,650 support level or the 100 hourly SMA. Any further losses could negate the chances of a strong rally this week and the price might continue lower towards $10,200.
Technical indicators:
Hourly MACD – The MACD is currently losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just below the 50 level.
Major Support Levels – $10,840, followed by $10,650.
Major Resistance Levels – $11,000, $11,100 and $11,500.
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Aayush Jindal, Khareem Sudlow
