Bitcoin is recovering and it recently broke the $11,500 resistance area against the US Dollar. BTC must climb above the 100 SMA (H4) to continue higher in the near term.
After forming a double bottom near $11,140, bitcoin started a strong recovery wave against the US Dollar. BTC broke the $11,400 and $11,500 resistance levels to move into a positive zone.
It even surpassed the 23.6% Fib retracement level of the downward move from the $12,479 high to $11,129 low. More importantly, there was a break above a major bearish trend line with resistance near $11,450 on the 4-hours chart of the BTC/USD pair.
Bitcoin is now trading nicely above the $11,500 and $11,550 resistance levels. It also helped Ethereum and ripple in climbing above $400 and $0.2750 respectively.
Bitcoin price breaks $11,500. Source: TradingView.com
An immediate resistance for the bulls is now seen near the $11,700 level or the 100 simple moving average (4-hours). The next major resistance is near the $11,800 level (the last key breakdown zone). It is also close to the 50% Fib retracement level of the downward move from the $12,479 high to $11,129 low.
Therefore, a clear break above the $11,700 and $11,800 resistance levels could start a larger upward move. In the mentioned case, the price might continue to rise towards the $12,000 and $12,200 levels. The next major hurdle for the bulls is near the $12,500 level.
If bitcoin struggles to climb above the 100 SMA or the $11800 resistance, there could be a downside correction. An initial support on the downside is near the $11,500 level.
The first major support is near the $11,400 level, below which the bears are likely to aim a retest the main $11,100 support region in the near term.
4 hours MACD – The MACD for BTC/USD is slowly moving into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Level – $11,400
Major Resistance Level – $11,700