Analysis

Bitcoin Above 100 SMA Could Start Fresh Rally Towards $12,500

Bitcoin is recovering and it recently broke the $ 11,500 resistance area against the US Dollar. BTC must climb above the 100 SMA (H4) to continue higher in the near term.

  • Bitcoin is slowly recovering and it surpassed the key $ 11,500 and $ 11,550 resistance levels.
  • The price is now facing another hurdle near the 100 simple moving average (4-hours) and $ 11,800.
  • There was a break above a major bearish trend line with resistance near $ 11,450 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to accelerate higher above $ 12,000 once it clears the 100 simple moving average (4-hours).

Bitcoin is Gaining Traction

After forming a double bottom near $ 11,140, bitcoin started a strong recovery wave against the US Dollar. BTC broke the $ 11,400 and $ 11,500 resistance levels to move into a positive zone.

It even surpassed the 23.6% Fib retracement level of the downward move from the $ 12,479 high to $ 11,129 low. More importantly, there was a break above a major bearish trend line with resistance near $ 11,450 on the 4-hours chart of the BTC/USD pair.

Bitcoin is now trading nicely above the $ 11,500 and $ 11,550 resistance levels. It also helped Ethereum and ripple in climbing above $ 400 and $ 0.2750 respectively.

Bitcoin

Bitcoin price breaks $ 11,500. Source: TradingView.com

An immediate resistance for the bulls is now seen near the $ 11,700 level or the 100 simple moving average (4-hours). The next major resistance is near the $ 11,800 level (the last key breakdown zone). It is also close to the 50% Fib retracement level of the downward move from the $ 12,479 high to $ 11,129 low.

Therefore, a clear break above the $ 11,700 and $ 11,800 resistance levels could start a larger upward move. In the mentioned case, the price might continue to rise towards the $ 12,000 and $ 12,200 levels. The next major hurdle for the bulls is near the $ 12,500 level.

Dips Likely Supported in BTC

If bitcoin struggles to climb above the 100 SMA or the $ 11800 resistance, there could be a downside correction. An initial support on the downside is near the $ 11,500 level.

The first major support is near the $ 11,400 level, below which the bears are likely to aim a retest the main $ 11,100 support region in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly moving into the bullish zone.

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

Major Support Level – $ 11,400

Major Resistance Level – $ 11,700

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Analysis – NewsBTC

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