Bitcoin Price Analysis: Breakout to $11,000 Looming
Bitcoin has been trading around $10,500 for the last few days as price levels begin to form rising support. The question remains as to whether enough volume will enter Bitcoin in order for price levels to break up-wards through key resistance at $11,00o.
Bitcoin 1-Hour Analysis
On the 1 hour chart for XBT/USD, we can see rising support has formed around the current market price. If this support breaks to the downside we should expect a re-test of $9,500 support. However, there’s a strong chance price levels will break above $10,800. If we do see a break to the upside price levels will likely head back above $13,000.
Both the 50 MA and 200 EMA crossed up over each other when Bitcoin price surpassed the trend line visible around $10,000. MACD seems to have lost momentum after spiking to the upside as mentioned in my previous analysis on Bitcoin. If MACD crosses down it’s likely the rising support around the market price will also break to the downside.
Volume remains sporadic right now with levels spiking and stagnating. In order to sustain a breakout above $10,800 as mentioned above there will need to be an increase in volume that holds.
On the 4 hour chart for XBT/USD, we can see more clearly that price levels are nearing a key breakout point at $10,800. This is also around the 61% fibonacci level, which if broken will likely see price levels jump to the 78% level around $12,000.
Unlike the 1 hour chart, the 50 MA and 200 EMA have yet to cross to the upside. However, if a breakout to the upside does occur then a crossover of these moving averages will likely take place at the same time. RSI has turned oversold despite price levels holding quite high.
It’s important to look out for decreasing volume because if price levels break below $9,500 many traders will be shorting in hopes of new visible range lows. Likely pullback targets are $8,400 and $7,100. Volume around the current market price is too low to sustain any form of breakout so it’s absolutely essential that volume increases over the coming days in order to see any form of bullish breakout on Bitcoin.
Key resistance or profit target levels to look out for providing price levels break to the upside are $11,100, $12,000 and $13,900.
Do you think Bitcoin will break upwards through $10,800 resistance over the coming days? Please leave your thoughts in the comments below!
This article is strictly for educational purposes and should not be construed as financial advice.
Images via Shutterstock, BTC/USD charts by TradingView