Bitcoin Price Holds Strong At $11.2K: A Strengthening Case For $12K
Bitcoin gained bullish momentum and rallied above the $ 11,000 resistance against the US Dollar. BTC is consolidating gains above $ 11,200 and it could extend its rise to $ 12,000.
- Bitcoin started a strong increase after it cleared the $ 10,950 and $ 11,000 resistance levels.
- The price is now trading well above $ 11,200 and the 100 simple moving average (4-hours).
- There was a break above a major contracting triangle with resistance near $ 10,750 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct lower, but buyers are likely to remain active near $ 11,200 and $ 11,000.
Bitcoin Turns Green
This past week, bitcoin made a few attempts to clear the $ 10,800 and $ 11,000 resistance levels against the US Dollar. Finally, the bulls gained strength and the price climbed sharply above $ 11,000.
The recent rally was initiated after there was a break above a major contracting triangle with resistance near $ 10,750 on the 4-hours chart of the BTC/USD pair. The upward move was such that the price even broke the $ 11,200 resistance.
It tested the $ 11,500 zone and a new monthly high is formed at $ 11,500. The price is now trading well above $ 11,200 and the 100 simple moving average (4-hours).
Bitcoin price rallies above $ 11,200. Source: TradingView.com
It seems like there is a short-term bullish continuation pattern forming with resistance near $ 11,400. On the downside, the triangle support is near $ 11,250 and the 50% Fib retracement level of the recent rally from the $ 11,029 swing low to $ 11,500 high.
If there is an upside break above the $ 11,400 level, the price is likely to clear the $ 11,500 high as well. The next major hurdle for the bulls is near the $ 11,800 level. Any further gains could lead bitcoin towards the $ 12,000 resistance level.
Downsides Could Be Limited in BTC
If bitcoin starts a downside correction, the triangle support at $ 11,250 might provide support. The next major support is near the $ 11,200 level or the 61.8% Fib retracement level of the recent rally from the $ 11,029 swing low to $ 11,500 high.
A downside break below the $ 11,250 and $ 11,200 support levels could start a steady decline towards the $ 11,000 support (key resistance turned support).
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 above the 60 level.
Major Support Level – $ 11,200
Major Resistance Level – $ 11,400