Technicals Suggest Bitcoin Price Needs To Clear $11,500 To Restart Rally

Bitcoin started a fresh increase above the $11,000 level against the US Dollar. BTC must surpass the $11,500 resistance zone to continue higher in the near term.

  • Bitcoin is trading nicely above the $11,000 and $11,200 support levels.
  • The price seems to be facing a major hurdle near the $11,450 and $11,500 resistance levels.
  • There is a key rising channel forming with support near $11,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must clear the $11,500 resistance area to gain bullish momentum for a move towards $11,800.

Bitcoin Price is Showing Positive Signs

After a sharp downside correction, bitcoin price remained stable above $10,500 against the US Dollar. BTC started a fresh increase and climbed above the $11,000 resistance zone.

The upward move was positive, as the bulls were able to push the price above the $11,200 level and the 100 hourly simple moving average. The price even spiked above the 50% Fib retracement level of the downward move from the $12,115 high to $10,590 swing low.

It seems like there is a key rising channel forming with support near $11,200 on the hourly chart of the BTC/USD pair. The pair is also facing a major hurdle near the $11,450 and $11,500 resistance levels.

Bitcoin Price

Bitcoin price trades above $11,200. Source: TradingView.com

The 61.8% Fib retracement level of the downward move from the $12,115 high to $10,590 swing low is also near the $11,533 level. Therefore, the price must clear the $11,500 resistance zone to continue higher. If the bulls succeed, the price could easily revisit the $11,800 level.

The next major resistance is near the $12,000 level. Any further gains could lead the price towards the $12,200 level in the near term.

Fresh Decline in BTC?

The channel support is seen near the $11,200 level. If there is a downside break below the channel support, bitcoin price might decline further towards the $11,000 support level.

The next main support is near the $10,840 level, below which the bears are likely to push the price towards the crucial $10,500 support zone. An intermediate support could be near the $10,700 level.

Technical indicators:

Hourly MACD – The MACD is slowly struggling to gain pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.

Major Support Levels – $11,200, followed by $11,000.

Major Resistance Levels – $11,450, $11,500 and $11,800.

Technicals Suggest Bitcoin Price Needs To Clear $11,500 To Restart Rally Technicals Suggest Bitcoin Price Needs To Clear $11,500 To Restart Rally Reviewed by Eugene D on August 04, 2020 Rating: 5

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