It’s Decision Time for Bitcoin as Technicals Suggest a Crucial Breakout Pattern
Bitcoin price is trading in a range above the $11,700 support zone against the US Dollar. BTC is likely to surge higher once it clears the main $12,000 resistance zone.
- Bitcoin is trading in a positive zone above the $11,700 and $11,750 support levels.
- The price is facing a strong resistance near $12,000, but it is following the 100 hourly SMA.
- There is a crucial breakout pattern forming with resistance near $11,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain sharply once the bulls are able to clear the key $12,000 resistance zone.
Bitcoin Price is Stuck in a Range
In the past few hours, there were positive moves in bitcoin above the $11,600 level against the US Dollar. BTC was able to climb higher above the $11,700 and $11,800 levels.
There was also a close above the $11,700 level and the 100 hourly simple moving average. However, the price seems to be facing a strong resistance near the $12,000 level. The bulls made more than two attempts to clear $12,000, but they failed.
The last swing high was formed near $11,987 and the price is currently trading near the 23.6% Fib retracement level of the upward move from the $11,273 low to $11,987 high.
Bitcoin price trades above $11,750. Source: TradingView.com
It seems like there is a crucial breakout pattern forming with resistance near $11,950 on the hourly chart of the BTC/USD pair. If bitcoin price breaks the triangle resistance and $12,000, there are chances of a strong upward move in the coming sessions.
On the upside, there is a short-term resistance near the $12,050 level. A successful close above the $12,050 level might open the doors for a run towards the $12,500 level in the near term.
Bearish Break in BTC?
If bitcoin fails to clear the $12,000 resistance zone, there could be a bearish reaction. The triangle support is near the $11,750 level and the 100 hourly SMA.
The main support is forming near the $11,650 and $11,600 levels. The 50% Fib retracement level of the upward move from the $11,273 low to $11,987 high is also near the $11,630 level to provide support. Any further losses could lead the price towards the $11,200 level.
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level.
Major Support Levels – $11,750, followed by $11,650.
Major Resistance Levels – $12,000, $12,050 and $12,200.