Bitcoin

It’s Decision Time for Bitcoin as Technicals Suggest a Crucial Breakout Pattern

Bitcoin price is trading in a range above the $ 11,700 support zone against the US Dollar. BTC is likely to surge higher once it clears the main $ 12,000 resistance zone.

  • Bitcoin is trading in a positive zone above the $ 11,700 and $ 11,750 support levels.
  • The price is facing a strong resistance near $ 12,000, but it is following the 100 hourly SMA.
  • There is a crucial breakout pattern forming with resistance near $ 11,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could gain sharply once the bulls are able to clear the key $ 12,000 resistance zone.

Bitcoin Price is Stuck in a Range

In the past few hours, there were positive moves in bitcoin above the $ 11,600 level against the US Dollar. BTC was able to climb higher above the $ 11,700 and $ 11,800 levels.

There was also a close above the $ 11,700 level and the 100 hourly simple moving average. However, the price seems to be facing a strong resistance near the $ 12,000 level. The bulls made more than two attempts to clear $ 12,000, but they failed.

The last swing high was formed near $ 11,987 and the price is currently trading near the 23.6% Fib retracement level of the upward move from the $ 11,273 low to $ 11,987 high.

Bitcoin Price

Bitcoin price trades above $ 11,750. Source: TradingView.com

It seems like there is a crucial breakout pattern forming with resistance near $ 11,950 on the hourly chart of the BTC/USD pair. If bitcoin price breaks the triangle resistance and $ 12,000, there are chances of a strong upward move in the coming sessions.

On the upside, there is a short-term resistance near the $ 12,050 level. A successful close above the $ 12,050 level might open the doors for a run towards the $ 12,500 level in the near term.

Bearish Break in BTC?

If bitcoin fails to clear the $ 12,000 resistance zone, there could be a bearish reaction. The triangle support is near the $ 11,750 level and the 100 hourly SMA.

The main support is forming near the $ 11,650 and $ 11,600 levels. The 50% Fib retracement level of the upward move from the $ 11,273 low to $ 11,987 high is also near the $ 11,630 level to provide support. Any further losses could lead the price towards the $ 11,200 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level.

Major Support Levels – $ 11,750, followed by $ 11,650.

Major Resistance Levels – $ 12,000, $ 12,050 and $ 12,200.

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