Bitcoin price stayed well bid above $ 11,400, breaking the important barrier of $ 11,600 against the US dollar. BTC is now trading above the 100 hour SMA and could continue to rise.
- Bitcoin is back in positive zone above the USD 11,500 and USD 11,600 resistance levels.
- The price was well above the 100-hour SMA and opened the doors for a push to $ 12,000.
- The hourly chart of the BTC / USD pair (data feed from Kraken) broke above a major bearish trendline with resistance near USD 11,560.
- The pair could gain 5% -10% as long as it is above the 100-hour average.
Bitcoin price is gaining momentum
Yesterday we discussed the importance of the 100-hour simple moving average and $ 11,600 for the next Bitcoin rally against the US dollar. BTC stayed well bid above the $ 11,400 level and was able to settle above the $ 11,500.
As a result, there has been a crucial uptrend above the $ 11,600 resistance and the 100-hour simple moving average. There was also a break above a major bearish trendline with resistance near USD 11,560 on the hourly chart of the BTC / USD pair.
The pair even climbed above the $ 11,800 level and traded as high as $ 11,852. Currently gains are being corrected and trading below $ 11,800 Bitcoin tested the 23.6% Fib retracement level of the recent bullish move from the low of $ 11,272 to the high of $ 11,852.
Bitcoin price trades above $11,650. Source: TradingView.com
On the downside, there is strong support near the $ 11,650 level and the 100-hour SMA. The next big support is near the $ 11,550 level or the 50% fib retracement level of the recent uptrend from the $ 11,272 low to the $ 11,852 high.
On the upside, there is short-term resistance near the USD 11,850 level. A successful close above the $ 11,850 level could open the doors for a short-term push towards $ 12,000 or even $ 12,200.
Another bug in BTC?
If Bitcoin fails to break the $ 11,850 resistance or the $ 12,000 barrier, a downward correction may occur. The main support is now forming near the USD 11,550 level.
If there is a downside break below the USD 11,550 support, the price could extend its decline towards the USD 11,200 support area.
Hourly MACD – The MACD is slowly picking up pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now back above the 50 level.
Major Support Levels – $ 11,650, followed by $ 11,550.
Main Resistance Levels – $ 11,850, $ 12,000, and $ 12,200.