- There were strong gains in bitcoin price above $10,500 and $11,000 against the US Dollar.
- The price struggled to stay above the $11,200 and $11,000 levels, and it recently corrected lower.
- There was a break below a major bullish trend line with support near $10,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains well supported on the downside near the $10,600 and $10,500 levels.
Bitcoin price is currently consolidating between $10,500 and $11,100 against the US Dollar. BTC price is holding the key $10,500 support and it could start a fresh increase.
Bitcoin Price Analysis
This past week, we saw a strong rise in bitcoin price above the $10,000 resistance level against the US Dollar. Moreover, the BTC/USD pair even broke the $10,500 level settled above the 100 hourly simple moving average. A new 2019 high was formed above $11,200 at $11,293 before the price started a downside correction. There was a break below the $11,000 support level to start a short term downside correction.
Moreover, there was a break below a major bullish trend line with support near $10,750 on the hourly chart of the BTC/USD pair. The pair even broke the $10,600 level before the bulls appeared above the $10,500 level. A swing low was formed near $10,523 and bitcoin price is currently moving higher. It is trading above the $10,700 level and the 23.6% Fib retracement level of the recent decline from the $11,293 high to $10,523 low.
On the upside, an immediate resistance is near the $10,900 level. It coincides with the 50% Fib retracement level of the recent decline from the $11,293 high to $10,523 low. Therefore, if there is an upside break above the $10,900 level, the price could even climb above $11,000. The next key resistances are near the $11,200 and $11,250 levels, above which the price might climb towards the $11,500 level.
On the downside, the main supports are $10,600 and $10,500, below which there is a risk of an extended decline in bitcoin. Besides, the next key support is near the $10,380 level, followed by the all-important $9,960 pivot level.
Looking at the chart, bitcoin price is clearly facing an uphill task near the $11,200 and $11,250 levels. Overall, if the bulls remain in action, they might be able to push the price above the $11,200 and $11,250 levels. In the mentioned bullish case, the next aim for them could be near $11,500 or even $12,000.
Technical indicators:
Hourly MACD – The MACD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level, with positive signs.
Major Support Levels – $10,600 followed by $10,500.
Major Resistance Levels – $10,900, $11,000 and $11,200.