TA: Bitcoin Likely Gearing For Another Upside Break: Rally Isn’t Over Yet
Bitcoin price surged above $11,000 and $11,200 against the US Dollar. BTC is now consolidating gains and it seems to be preparing for another rally above $11,500.
- Bitcoin is showing positive signs and it is trading nicely above the $11,200 support level.
- The price is facing a short-term resistance at $11,420, but it is above the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $11,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rally if it clears the $11,420 and $11,500 resistance levels.
Bitcoin Price is Showing Positive Signs
Bitcoin price started a strong upward move after it broke the $11,000 resistance against the US Dollar. BTC even cleared the $11,200 resistance and settled well above the 100 hourly simple moving average.
It traded to a new monthly high near $11,495 before starting a short-term downside correction. There was a break below the $11,400 level, plus the price traded below the 23.6% Fib retracement level of the upward move from the $11,025 low to $11,494 high.
However, the bulls were able to protect the $11,250 support level. The 50% Fib retracement level of the upward move from the $11,025 low to $11,494 high also acted as a strong support.
Bitcoin price settles above $11,250. Source: TradingView.com
It seems like there is a key contracting triangle forming with resistance near $11,420 on the hourly chart of the BTC/USD pair. The pair is currently trading near the triangle resistance and attempting an upside break above $11,400.
If there is a clear break above the $11,420 level, the price could even surpass the $11,500 resistance. In the stated case, there are chances of a fresh rally and the price could rise towards the $12,000 level in the near term.
Dips Now Supported in BTC?
Bitcoin is likely to find support near the $11,250 and $11,200 levels. If there is a downside break below the triangle support, there are chances of a larger correction below $11,200.
The next major support is near the $11,120 level or the 100 hourly simple moving average. The main support is likely forming near $11,000 (the last breakout zone).
Technical indicators:
Hourly MACD – The MACD is about to gain pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
Major Support Levels – $11,250, followed by $11,200.
Major Resistance Levels – $11,400, $11,420 and $11,500.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow