Bitcoin Starts Vertical Rally To $11.5K and $12K: Uptrend Isn’t Over Yet
This month, bitcoin started a strong upward move above the $9,000 resistance area. Earlier, BTC was able to settle nicely above the $8,800 pivot level and the 100-day simple moving average.
It cleared the path for more gains above the $9,200 and $9,250 resistance levels. More importantly, the bulls were able to push the price the main $9,500-$9,600 resistance area.
During the rise, there was a break above a crucial bearish trend line with resistance near $9,000 on the daily chart of the BTC/USD pair. Bitcoin even surpassed the 76.4% Fib retracement level of the last key decline from the $10,579 high to $6,423 low.
The price is now showing a lot of positive signs and it recently climbed above the $10,000 level. The next resistance is seen near the $10,579 swing high.
However, the first key resistance for the bulls may perhaps be near the $11,560 level. It represents the 1.236 Fib extension level of the last key decline from the $10,579 high to $6,423 low.
Any further gains could lead the price towards the $12,100 resistance level. The main target for the current wave could be near $13,000 since it is close to the 1.618 Fib extension level of the last key decline from the $10,579 high to $6,423 low.
Downside Correction in BTC?
The recent break above $9,500 and $10,000 was significant. It has opened the doors for a larger rally towards $11,500 and $12,000.
Therefore, the chances of a downside correction are very less. An initial support is near the $9,600 area (the recent breakout zone). Any further losses may lead bitcoin price towards the $9,000 support area.