Bitcoin Breaks Uptrend Resistance, But $11,00 Could Be Game Changer

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price formed a strong support base above $10,000 against the US Dollar. BTC is currently correcting above $10,500, but it is likely to face a strong resistance near $10,800 and $11,000.

Bitcoin is slowly recovering higher above the $10,400 and $10,500 resistance levels.
The price is likely to struggle near $10,800 and the 100 simple moving average (4-hours).
There is a key rising channel forming with support near $10,400 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair must settle above the $11,000 resistance to move into a positive zone.

Bitcoin is Showing Positive Signs

This past week, bitcoin made a few attempts to clear the $10,000 and $9,880 support levels against the US Dollar. However, BTC failed to close below $9,880 and recently formed a strong support base above $10,000.

A decent recovery wave is underway and the price already climbed above the $10,200 and $10,400 resistance levels. There was a break above the 23.6% Fib retracement level of the downward move from the $12,066 high to $9,850 swing low.

The price is now trading above the $10,500 level, but it is still well below the 100 simple moving average (4-hours). An initial resistance on the upside is near the $10,600 level. There is also a major hurdle forming near the $10,800 level and the 100 simple moving average (4-hours).

Bitcoin price breaks $10,500. Source: TradingView.com

It seems like there is a key rising channel forming with support near $10,400 on the 4-hours chart of the BTC/USD pair. If the pair continues to follow the channel, there are chances of an upside break above the $10,800 and $11,000 resistance levels.

The 50% Fib retracement level of the downward move from the $12,066 high to $9,850 swing low is also near the $10,963 level. A successful break above the channel resistance, the $11,000 barrier, and the 100 simple moving average (4-hours) is needed to start a strong increase.

Dips Supported in BTC?

If bitcoin struggles to climb above the $10,600 resistance or the 100 simple moving average (4-hours), there are chances of a downside correction.

The channel support near the $10,400 level is a key support. The main support is near the $10,000 level. A daily close below the $10,000 support could negate the chances of a steady increase 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 above the 50 level.

Major Support Level – $10,400

Major Resistance Level – $10,800

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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