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Bitcoin exchange rate has overcome the key resistance level

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4 Signs Bitcoin Is Ready To Bounce $ 38k Again And Target New Highs

Bitcoin exchange rate has overcome the key resistance level

Bitcoin exchange rate has overcome the key resistance level
CONTENT

  • Bitcoin broke through the downward resistance line

  • Long-term technical indicators paint a bullish picture

  • Support takes place in the region of $ 11,000- $ 11,100

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Bitcoin (BTC) has broken through important resistance and should continue to rally towards the next barrier after a potential short-term decline

Weekly forecast

During the week of October 5-12, the Bitcoin rate formed a bullish candle, rising from a minimum of $ 10,525 to a maximum of $ 11,469.

Bitcoin exchange rate has overcome the key resistance level

This is a bullish signal, however, quotes have remained under the important $ 11,800 resistance since July last year. Break of the $ 11,700 zone will clear the way to the $ 14,000 mark.

The cryptocurrency has been on the rise since retesting the $ 10,000 support level in early September. Technical indicators point to bullish sentiment, with MACD signaling higher momentum after four straight weeks of decline.

BTC chart. Source: TradingView

Breakout resistance

The daily chart shows that the price has broken:

  • downtrend resistance line from August 17 high;
  • the $ 11,200 zone, which previously served as a support and represents the 0.618% Fibonacci retracement level relative to the recent decline.
Bitcoin exchange rate has overcome the key resistance level

If the rally continues, minor resistance is expected at $ 11,600, and more importantly, around $ 12,070. These levels are in line with the aforementioned long-term resistance discussed above..

BTC chart. Source: TradingView

Technical indicators on daily charts paint a bullish picture. MACD, RSI and Stochastic Oscillator are going up. Moreover, MACD has reached positive territory and the Stochastic Oscillator has formed a bullish crossover.

Thus, Bitcoin is likely to try to break the $ 12,000 level..

BTC chart. Source: TradingView

Potential rollback

Despite bullish signals from long-term dynamics and indicators, there are bearish signs on shorter-term charts.

The price is experiencing difficulties with the breakdown of the $ 11,400 level and has already started giving weakening signals. For example, the RSI on the 6-hour chart signals a bearish divergence, while the MACD began to decline.

BTC chart. Source: TradingView

Bitcoin exchange rate has overcome the key resistance level

The 2-hour charts show an even gloomier picture – MACD has entered negative territory and is giving signals of bearish divergence.

Thus, we should expect a fall to the levels of 0.382-0.5% Fibonacci retracement in the region of $ 11,017- $ 11,131, followed by the resumption of the bullish move.

BTC chart. Source: TradingView

So, Bitcoin will most likely try to break through the $ 11,600- $ 12,000 resistance zone, but first it will show a short-term decline.

The previous analysis of bitcoin can be read here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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