Bitcoin (BTC) Price Tops $11.2K, Short Term Correction Before Higher

  • There were sharp gains in BTC to USD above the $10,000 level against the US Dollar.
  • The price traded to a new 2019 high above the $11,000 level at $11,234.
  • There is a key bullish trend line forming with support near $10,550 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is currently trading above the $9,000 level and it could continue higher towards the $10,000 level.

Bitcoin price is surging and it recently topped near the $11,200 level against the US Dollar. BTC could consolidate in the short term before a fresh increase above $11,000.

Bitcoin Price Weekly Analysis (BTC)

This past week, bitcoin price started a strong rally above the $8,500 and $9,000 resistances against the US Dollar. The BTC/USD pair even gained strength above the $10,000 and $10,500 levels. Finally, there was a break above the $11,000 level and the price settled well above the 100 simple moving average (4-hours). Finally, the price formed a new 2019 high near $11,200 and recently started a downside correction.

It declined below $11,000 and $10,800. However, the $10,400 level acted as a decent support and a swing low was formed at $10,363. The price is currently moving higher and it trading near the $10,700 level. It is above the 23.6% Fib retracement level of the recent correction from the $11,234 high to $10,363 low. However, it seems like the $10,800 and $10,950 levels are currently capping gains.

The 50% Fib retracement level of the recent correction from the $11,234 high to $10,363 low is also preventing gains. If there is a successful break above $10,950 and a follow through above $11,000, the price is likely to resume its uptrend. The next key resistances are near $11,200 and $11,500. If bitcoin price continues to rise, it could even test the key $12,000 level in the near term.

On the downside, there are many supports near $10,500. Moreover, there is a key bullish trend line forming with support near $10,550 on the 4-hours chart of the BTC/USD pair. If bitcoin slides below the trend line, it could revisit the $10,200 and $10,000 support levels.

Looking at the chart, bitcoin price seems to be currently correcting gains. It remains well supported above $10,000 and there are chances of a fresh increase above $11,000. The bulls are likely to target further gains and just like the 2017 bull-run, the price might soon accelerate above $11,200.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly reducing its bullish slope.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the overbought zone, with a few bearish signs.

Major Support Level – $10,500

Major Resistance Level – $11,000

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