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TA: Bitcoin is Showing Early Signs of Fresh Increase, But $10.6K Is The Hurdle

Bitcoin 2020/10/16 05:58 by Aayush Jindal

Bitcoin price started a fresh increase from the $11,260 low against the US Dollar. BTC must settle above $11,600 to continue higher towards $11,800 and $12,000.

  • Bitcoin is showing a few positive signs above the $11,450 and $11,500 levels.
  • The price is currently facing hurdles near $11,560, but it is above the 100 hourly simple moving average.
  • There was a break above a key bearish trend line with resistance near $11,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a steady upward move if it closes above $11,560 and $11,600.

Bitcoin Price is Gaining Momentum

In the past few sessions, there was a steady decline in bitcoin price below the $11,500 and $11,400 levels. BTC even broke the $11,300 level and the 100 hourly simple moving average.

However, it remained well bid above the $11,200 support level. A low was formed near $11,258 and the price started a fresh increase. There was a break above the $11,350 and $11,400 levels. Bitcoin even surpassed the $11,500 resistance and the 100 hourly simple moving average.

During the rise, there was a break above a key bearish trend line with resistance near $11,450 on the hourly chart of the BTC/USD pair. The price even spiked above the $11,560 resistance, but it failed to continue higher.

Bitcoin Price

Source: BTCUSD on TradingView.com

A high is formed near $11,631 and the price is currently correcting gains. It traded below the $11,560 level, plus the 23.6% Fib retracement level of the recent wave from the $11,258 low to $11,631 high.

There is a strong support forming on the downside near the broken trend line and $11,450. It is close to the 50% Fib retracement level of the recent wave from the $11,258 low to $11,631 high.

On the upside, the bulls need to gain strength above the $11,560 and $11,600 levels. If they succeed, bitcoin price might rise steadily towards the $11,800 and $12,000 resistance levels in the near term.

Downside Break in BTC?

If bitcoin fails to gain strength above $11,560 and $11,600 resistance levels, there is a risk of a fresh decline. The first major support is near the $11,450 level and the 100 hourly simple moving average.

A clear break below the $11,450 support could push the price further lower and it could decline towards the $11,200 support level.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

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

Major Support Levels – $11,450, followed by $11,260.

Major Resistance Levels – $11,560, $11,600 and $11,800.

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