HomeBitcoin NewsBitcoin Price Analysis: BTC Must Stay Above $11,000 For Fresh Rally

Bitcoin Price Analysis: BTC Must Stay Above $11,000 For Fresh Rally

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  • Bitcoin price rallied to a new multi-month high at $12,131 correcting lower.
  • The price traded as low as $10,560 and it recently recovered above the $11,000 level.
  • There is a connecting bullish trend line forming with support near $11,040 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair must stay above the main $11,000 support zone to start a fresh rally in the near term.

Bitcoin price is holding a couple of important supports near $11,000 against the US Dollar. BTC could accelerate higher if it clears the main $11,400 resistance zone.

Bitcoin Price Analysis

This past week, bitcoin price started a strong bullish move above the $11,000 resistance level against the US Dollar. BTC broke the key $11,500 resistance zone and settled well above the 55 simple moving average (4-hours).

It opened the doors for more gains and the price climbed above the $12,000 level. However, it failed to extend gains and a new multi-month high was formed near $12,131. Recently, there was a sharp decline and the price dived below the $11,000 level.

It traded as low as $10,560 before starting a fresh increase. There was a strong recovery above the $11,000 level. The price even climbed above the 50% Fib retracement level of the downward move from the $12,131 high to $10,560 swing low.

It seems like there is a connecting bullish trend line forming with support near $11,040 on the 4-hours chart of the BTC/USD pair. However, the pair seems to be facing hurdles near the $11,425 and $11,480 levels.

The 61.8% Fib retracement level of the downward move from the $12,131 high to $10,560 swing low is also near the $11,530 level to act as a major hurdle. A successful break above the $11,530 level could open the doors for a strong upward move towards the $12,000 level.

Conversely, the price could decline below the main $11,000 support level. The next immediate support is near the $10,850 level, below which the bears are likely to take over control.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading above a couple of important supports near $11,000. Therefore, the price must stay above the main $11,000 support zone to start a fresh rally in the near term.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI is currently just near the 50 level.

Key Support Levels – $11,000 and $10,850.

Key Resistance Levels – $11,425, $11,530 and $12,000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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