In my previous analysis, we looked at how bitcoin price action was trading in a key decision point. Now BTC bulls are heading back towards the $11,000 price mark forming a new uptrend.
Bitcoin Price 1-Hour Chart
On the 1 Hour chart for XBT/USD, we can see how the recent breakout of the asymmetrical triangle mentioned in a previous analysis has progressed over the last 3 days. The decision point range between $9,860 and $10,120 to determine the sustainability of the breakout has clearly broken to the upside resulting in a new sharp uptrend causing price levels to rise 11%.
Volume has begun to pick back up on this move to the upside but still remains fairly low in comparison to the volume seen in the move to $13k throughout June and July. A pull-back to $10,120 is expected within the next 48 hours and would present an optimal re-entry opportunity. The next key resistance level to look out for on this move is $11,000.
4-Hour Chart
On the 4 Hour chart for XBT/USD, we can see the breakout and new short-term uptrend in comparison to prior price action. Once the key resistance point at $11,000 is broken there’s little to no resistance until $12,000 meaning price levels will likely move very quickly within this trading range.
Maxx Momentum fired long right at the breakout point visible by the orange circles as momentum shifted to green, this is a sign of a strong breakout and that bears were really struggling to bring price levels down further. POC has moved up close to the current market price at $10,500 meaning lots of buying and selling is happening at this level and will likely become a new support zone. In order for this to happen price action must trade sideways within 3-4% of $10,500 over the coming days.
Both the 15 MA and 50 EMA has visibly crossed up over each other on this breakout which again points to a confident breakout for bulls and is also a sign of a new stronger trend forming. $8,800 was the key support level that BTC has to hold in order for the short-term consensus to remain bullish. I mentioned in a previous analysis that it’s unlikely this level will break and would require a significant amount of selling pressure which clearly hasn’t come to fruition.
Do you think Bitcoin price will reach $11,000 and head back towards $12,000 throughout the month of August? Please leave your thoughts in the comments below!
Images via Shutterstock, BTC/USD charts by tradingview
The Rundown
