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

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.

Technical indicators:

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.

Key Reasons Why Bitcoin Must Clear $11,500 For Hopes of a Fresh Rally Key Reasons Why Bitcoin Must Clear $11,500 For Hopes of a Fresh Rally Reviewed by Eugene D on August 27, 2020 Rating: 5

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