Key Reasons Why Bitcoin Must Clear $11,500 For Hopes of a Fresh Rally
Bitcoin price is currently struggling to clear the $11,500 and $11,550 resistance levels against the US Dollar. BTC could start a steady increase if it clears the $11,500 resistance.
- Bitcoin is trading in a range below the $11,650 and $11,550 resistance levels.
- The price is facing a major hurdle near $11,500, $11,550, and the 100 hourly simple moving average.
- There is a major breakout pattern forming with resistance near $11,520 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either break the $11,550 barrier or slide further below the $11,100 support.
Bitcoin Price Facing Hurdles
Bitcoin price started a short-term upside correction from the $11,100 support against the US Dollar. BTC recovered above the $11,200 and $11,400 levels, but it faced a strong resistance near the $11,500 level.
A high is formed near $11,540 and the price is still well below the 100 hourly simple moving average. It is currently declining and trading below $11,400. There was a break below the 23.6% Fib retracement level of the recent recovery wave from the $11,100 swing low to $11,540 high.
The next major support is near the $11,330 level since it is close to the 50% Fib retracement level of the recent recovery wave from the $11,100 swing low to $11,540 high. It seems like there is a major breakout pattern forming with resistance near $11,520 on the hourly chart of the BTC/USD pair.
Bitcoin price trades below $11,500. Source: TradingView.com
On the upside, the bulls are facing a major hurdle near the trend line, $11,500, $11,550, and the 100 hourly simple moving average. These are key reasons why a successful close above the $11,550 level and the 100 hourly SMA is must to increase chances of a fresh increase.
The next major resistance is near the $11,700 level, above which bitcoin could attempt an upside break above the $11,800 level in the near term.
Downside Break in BTC?
If bitcoin fails to recover above the $11,500 and $11,500 levels, there could be another bearish reaction. The first major support is near the $11,330 and $11,300 levels.
The main support is now forming near the $11,100 level, below which there is a risk of more losses below the $11,000 support. The next major support could be $10,500.
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is struggling to move above the 50 level.
Major Support Levels – $11,300, followed by $11,100.
Major Resistance Levels – $11,500, $11,550 and $11,700.