Why Bitcoin Price Lift-off To $11,000 Awaits Consolidation Under $10,200?
- Bitcoin bulls keen on nurturing a bullish trend within the rising channel.
- BTC/USD settles above $10,100 support as consolidation sets in across the board.
Bitcoin continues to nurture an uptrend especially when the charts are looked from a long term perspective. BTC/USD has made great progress from the beginning of the year when it exchanged hands slightly above $7,000. The winning streak has seen the bullish momentum rise above the critical $10,000 levels and extended the gains above $10,500. However, the bullish has also encountered its fair share of pullbacks that have always resulted in bullish reversals forming new yearly highs.
The recent correction from highs at $10,525 dipped under $10,000 before finding credible support at $9,500. Recovery from the lows this week has been steady. However, Bitcoin bulls failed to shoot above the yearly highs. Instead, a weekly high formed at $10,325 (on Coinbase).
At the time of writing, BTC/USD is trading at $10,171 after losing a subtle 0.16% of its value on the day. The price is dancing within an ascending channel whose support and resistance has been tested more than once. As long as Bitcoin continues to advance upwards within the channel, there is a possibility that it could soon hit levels above $11,000.
BTC/USD daily chart
From a technical perspective, the trend is neither bearish nor bullish. This means that bullish pressure is in equal measures with bearish pressure. The RSI confirms the sideways action with the horizontal motion at 60. The driver’s seat has hosted mainly hosted the bears over the last week. However, there have been instances of bullish control which explains the lower highs pattern of the RSI.
In the event the support at $10,100 falters, Bitcoin price could dive greatly under $10,000, opening the Pandora box. The channel support has to stay intact to safeguard BTC/USD’s chances of rising above $11,000 in the near term.
Bitcoin Key Levels
Spot rate: $10,159
Relative change: -28
Percentage change: -0.28%
Trend: Sideways action
Support: $10,100, $9,800 and channel support
Resistance: $10,325, $10,500
BTC/USD settles above $10,100 support as consolidation sets in across the board.
Disclaimer
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
Published at Wed, 19 Feb 2020 12:05:12 +0000
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