This Technical Breakout Suggests Bitcoin Is Gearing For Another Lift-Off
Bitcoin started a fresh increase from the $10,140 swing low against the US Dollar. BTC broke the $10,550 resistance and it seems like the bulls are aiming a clear break above $11,000.
- Bitcoin stayed above the $10,000 support and started a decent recovery wave.
- The price is currently trading well above the $10,550 resistance and the 100 simple moving average (4-hours).
- There was a break above a key bearish trend line with resistance near $10,600 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue higher if there is a clear break above the $10,800 resistance.
Bitcoin Turns Green
This past week, bitcoin found support above the $10,100 level against the US Dollar. BTC remained well bid above the $10,200 level and recently started a steady recovery wave.
There was a break above the $10,350 and $10,400 levels. The main technical breakout was near the $10,550 resistance zone and the 100 simple moving average (4-hours). Moreover, there was a break above a key bearish trend line with resistance near $10,600 on the 4-hours chart of the BTC/USD pair.
Bitcoin climbed above the 50% Fib retracement level of the downward move from the $11,192 high to $10,140 swing low. It has opened the doors for more gains above the $10,700 level.
Bitcoin price breaks $10,700. Source: TradingView.com
The price is now struggling to clear a key resistance zone near $10,800. It is close to the 61.8% Fib retracement level of the downward move from the $11,192 high to $10,140 swing low. A successful break and close above the $10,800 resistance could open the doors for more gains above the $11,000 resistance.
The next major resistance is near the $11,200 level, above which the bulls are likely to aim a larger increase towards the $11,500 level in the near term.
Dips Supported in BTC?
If bitcoin struggles to climb above the $10,800 resistance or the $11,000 barrier, it might correct lower. An initial support is near the $10,650 level.
The main support on the downside is near the $10,550 level and the 100 simple moving average (4-hours). A close below the $10,550 and $10,500 support levels may perhaps clear the path for a sustained decline.
Technical indicators
4 hours MACD – The MACD for BTC/USD is showing positive signs in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Level – $10,550
Major Resistance Level – $10,800
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow