HomeBitcoin NewsBitcoin Price Analysis: BTC Approaching Next Key Breakout

Bitcoin Price Analysis: BTC Approaching Next Key Breakout

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  • Bitcoin price is facing a strong resistance near $10,900 and $11,000 against the US Dollar.
  • The price is holding the $10,600 support level and the 55 SMA (H4).
  • There is a key breakout pattern forming with support near $10,600 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is likely to decline sharply if there is a break below the $10,600 and $10,500 support levels.

Bitcoin price is currently trading in a range above the $10,500 support against the US Dollar. BTC could either rally above $11,000 or decline heavily below $10,500.

Bitcoin Price Analysis

After forming a base above $10,180, bitcoin price started a decent upward move against the US Dollar. BTC broke a couple of important hurdles near $10,500 and $10,550 to move into a positive zone.

There was also a close above the $10,550 level and the 55 simple moving average (4-hours). However, the price is facing a strong resistance near $10,900 and $11,000. A high is formed near $10,961 and the price is currently trading in a range.

There was a break below the 23.6% Fib retracement level of the upward move from the $10,141 swing low to $10,961 high. The price is now holding the $10,600 support level and the 55 SMA (H4).

It seems like there is a key breakout pattern forming with support near $10,600 on the 4-hours chart of the BTC/USD pair. If there is a downside break, the price might test the $10,555 support level. It is close to the 50% Fib retracement level of the upward move from the $10,141 swing low to $10,961 high.

A successful close below the $10,555 and $10,500 support level could lead the price back towards the $10,200 support level. The next major support is near the $10,000 level.

Conversely, bitcoin price might clear the triangle resistance and $10,961 high to continue higher. The main resistance is near the $11,050 level, above which the price could rise towards the $11,450 and $11,500 levels.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly consolidating above the $10,555 support level and the 55 SMA (H4). Having said that, the price could decline sharply if there is a break below the $10,600 and $10,500 support levels.

Technical indicators

4 hours MACD – The MACD is struggling to gain pace in the bullish zone.

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

Key Support Levels – $10,600 and $10,555.

Key Resistance Levels – $10,900, $11,050 and $11,165.

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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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