Bitcoin

Bitcoin Price is Primed For a Rally And Only 1 Thing is Holding it Back

Bitcoin is showing positive signs above the $ 10,800 support against the US Dollar. BTC broke the $ 11,000 level and it is currently correcting lower towards key supports.

  • Bitcoin gained pace and traded to a new weekly high at $ 11,176.
  • The price is currently correcting below $ 11,000, but it is well above the 100 simple moving average (4-hours).
  • There are two major bullish trend lines forming with support near $ 10,900 and $ 10,800 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue higher above $ 11,000 as long as there is no close below $ 10,800.

Bitcoin Turns Green

This past week, bitcoin started a steady rise above the $ 10,650 and $ 10,800 resistance levels against the US Dollar. BTC even broke the $ 11,000 level and settled well above 100 simple moving average (4-hours).

A new weekly high is formed near $ 11,176 and the price is currently correcting lower. There was a break below the $ 11,050 and $ 11,000 levels. Bitcoin even traded below the 50% Fib retracement level of the recent increase from the $ 10,818 low to $ 11,176 high.

On the downside, there are couple of important supports near the $ 10,800 level. There are also two major bullish trend lines forming with support near $ 10,900 and $ 10,800 on the 4-hours chart of the BTC/USD pair.

Bitcoin Price

Bitcoin price breaks $ 11,000. Source: TradingView.com

The first trend line is close to the 76.4% Fib retracement level of the recent increase from the $ 10,818 low to $ 11,176 high. The second trend line is near the previous breakout zone at $ 10,800 (a strong support).

On the upside, the bulls are struggling to gain pace above $ 11,000 and $ 11,100. A successful close above the $ 11,200 level might clear the path for a push towards the $ 11,500 resistance or even $ 11,800.

Dips Supported in BTC?

If bitcoin struggles to climb above the $ 11,000 resistance, it might continue to move down. The main support on the downside is near the second trend line and $ 10,800.

A clear break and close below the $ 10,800 support level may perhaps lead the price towards the next major support near the $ 10,550 level. Any further losses might call for a test of the $ 10,200 level.

Technical indicators

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

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

Major Support Level – $ 10,800

Major Resistance Level – $ 11,200

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Bitcoin – NewsBTC

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