BTC Key Indicators Create Strengthening Case For New Rally
BTC key indicators create a strengthening case for another rally above $11.5K as the price is holding strong support near the $11,230 level against the US dollar. Bitcoin will rally above $11,500 as long as it maintains the hold above the $11,000 pivot level so let’s read more in our latest bitcoin news.
The price is still trading well above the $11,000 pivot level and the 100 simple moving average. There are a declining channel and a bullish flag pattern forming with the resistance close to the $11,450 on the 4-hour charts of the pair which could start another upward movement once it clears the main level of $11,450 and the $11,500 resistance level.
Over the past week, Bitcoin tried to make another upside break above the $11,500 and the $11,600 resistance levels against the US dollar but the price failed to gain more traction above $11,600. A new high was formed close to the $11,627 before the price started a fresh decline. BTC broke the $11,500 support level and retested the main $11,200 support zone while a new low was formed near the $11,200 and the price started correcting higher.
There was a break above the $11,300 level and Bitcoin is traded well above the $11,000 pivot level with the 100 simple moving average. BTC surpassed the 23.6% fib retracement level of the decline at $11,627 high to the $11,200 low. It seems like there’s a declining channel or a bullish flag pattern that was formed close to the $11,450 on the 4-hour charts of the BTC/USD pair. the resistance at the $11,420 level since it is close to the 50% retracement level of the decline at $11,627 high to the $11,200 low.
To start a new rally, the price has to break the $11,420 level with the channel resistance with the next key resistance close to the $11,500 level above which the price could surpass it and reach $11,700. More gains could lead to Bitcoin towards a $12,000 resistance level as the BTC key indicators create a strong possibility. If Bitcoin fails to clear the channel fails to clear the resistance at $11,500 with a risk of fresh decline while the main support is set on the $11,230 and $11,000 levels. A downside break below the $11,230 and the $11,000 support levels could initiate a sharp decline at $11,000 support.