- Bitcoin escapes the bear range ($10,200 – $10,500) stepping above $10,700.
- A breakout above the rising wedge pattern will propel Bitcoin towards $11,000.
The bulls managed to shake off the bear pressured we discussed earlier today. As mentioned Bitcoin needed to come out of the battle zone between $10,200 and $10,500. Escaping this range has already revived the investors’ hope that Bitcoin will jump above $11,000 in the short-term.
Bitcoin bulls trampled massively on the resistance at $10,500 and $10,600 respectively. A couple of successive candlesticks pushed Bitcoin above the sellers’ congestion zone at $10,700. At the press time, Bitcoin is trading at $10,718 following a 3.19% rise on the day.
BTC/USD 1-hour chart
A number of former resistance zones are transforming into viable support areas. Although momentum is building towards $10,800 hurdle, a reversal may occur. If that happens, $10,700 will function as a credible support area. Traders must be aware and in the lookout for the next possible support zones including $10,400, $10,200 and $10,000.
In the short-term, it is important that Bitcoin is sustained above $10,200. Otherwise, a lower leg could extend below $10,000 and refresh the support areas between $9,200 and $9,300.
On the upside, the major hurdle is the ascending wedge pattern resistance. However, a break above the hurdle will propel Bitcoin above $10,800. Moreover, it will set the ground for an impending leg up to $11,200 and $11,500 in that order.
Technically, Bitcoin is poised for the trajectory above $11,000. The Relative Strength Index (RSI) is now above 70 and pointing north. If the signal moves higher within the overbought, it will signal a stronger trend and price momentum. However, the retreat from the same zone will signal a reversal.
Bitcoin Key Technical Levels:
Spot rate: $10,789
Trend: Strongly bullish.
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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