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Bitcoin bounced back sharply after testing the $11,500 support zone against the US Dollar. BTC is likely to accelerate higher above $12,000 as long as it is above the 100 hourly SMA.
- Bitcoin is trading well above the $11,800 and $11,500 support levels.
- The price is facing a couple of hurdles near the $12,000 and $12,080 levels.
- There was a break above a key bearish trend line with resistance near $11,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must stay above the 100 hourly simple moving average to clear the $12,000 resistance.
Bitcoin Price is Holding Uptrend
After forming a short-term top near $12,080, bitcoin price corrected lower against the US Dollar. BTC broke the $11,800 support level and dived more than $500. It traded close to the $11,500 support area, where the bulls appeared.
A swing low is formed near $11,536 and recently the price bounced back sharply. It climbed back above the $11,800 resistance and the 100 hourly simple moving average. The bulls pushed the price above the 50% Fib retracement level of the sharp decline from the $12,084 high to $11,536 swing low.
Moreover, there was a break above a key bearish trend line with resistance near $11,880 on the hourly chart of the BTC/USD pair. The pair is currently approaching the $11,950 and $12,000 levels.
Bitcoin price trades above $11,800. Source: TradingView.com
The 76.4% Fib retracement level of the sharp decline from the $12,084 high to $11,536 swing low could act as an immediate resistance in the near term at $11,950. A clear break above the $11,950 level could increase the chances of a push above the $12,000 level.
The next resistance is near the $12,080 level, above which the bulls are likely to aim more upsides above the $12,200 and $12,250 levels.
100 SMA Holds The Key For BTC
If bitcoin fails to reclaim the $12,000 resistance, it could correct lower in the short term. A key support seems to be forming near the $11,700 level and the 100 hourly SMA.
If there is a downside break below the $11,700 support and the 100 hourly SMA, the price could retest the $11,500 support zone. Any further gains could lead the price towards $11,200.
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.
Major Support Levels – $11,700, followed by $11,500.
Major Resistance Levels – $11,950, $12,000 and $12,080.
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal