- 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.
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.
