Bitcoin Hesitates Below $11,550, But Upside Break To $12K Seems Likely
After forming a support base above $11,300, bitcoin price started a slow and steady increase. BTC cleared the $11,400 resistance and the 100 hourly simple moving average to move into a positive zone.
During the rise, there was a break above a connecting bearish trend line with resistance near $11,420 on the hourly chart of the BTC/USD pair. The price even spiked above the $11,500 resistance, but it seems to be facing hurdles near $11,560.
A high is formed near $11,540 and the price is currently correcting lower. There was a break below the $11,500 level. Bitcoin traded below the 23.6% Fib retracement level of the recent rise from the $11,257 low to $11,540 high.
On the downside, there is a decent support forming near the $11,400 level. There is also a key rising channel forming with support near $11,420 on the same chart.
The 50% Fib retracement level of the recent rise from the $11,257 low to $11,540 high is close to $11,400 and the 100 hourly simple moving average. On the upside, the price is clearly facing a strong resistance near the $11,550 and $11,560 levels.
A successful break above the $11,560 resistance could open the doors for a larger increase 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, it could start a fresh drop. The first major support is near the $11,400 level and the 100 hourly simple moving average.
A clear break below the $11,400 support could negate the chances of an upside break above $11,560 in the next 2-3 sessions. The next major support is near the $11,300 level.