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

Source