Bitcoin Price Analysis: BTC Toys With The Idea Of A Pre-weekend Break Above $11k

By John Isige
Published September 6, 2019 Updated September 6, 2019
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Bitcoin Price Analysis: BTC Toys With The Idea Of A Pre-weekend Break Above $11k

By John Isige
Published September 6, 2019 Updated September 6, 2019
  • Bitcoin bulls have been keen on defending the most important zones including $10,500 and $10,400.
  • Expect resistance to build around $10,800 and $10,900 respectively.

Bitcoin managed to avert the bear action on Thursday to defend the tentative support at $10,500. It appears the break above the two-months long descending triangle was not a bear trap after all. Besides, the price took advantage of the high volume earlier this week to push for a leap above the 50-Day Moving Average.

Although the upside has been largely limited below $10,800, Bitcoin bulls have been keen on defending the most important zones including $10,500, $10,400 and psychological support at $10,200.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

For a moment, Bitcoin had analysts worried when the recovery from $9,400 zoomed smoothly past $10,000 (former broken support). This was a perfect recipe for a reversal commonly known as a bear trap. On the contrary, other fundamentals like the trading volume and positive investor sentiments kept Bitcoin above the key $10,500 on Thursday.

At press time, Bitcoin has a market value of $10,736 following a 1.11% increase in the last 24 hours. Glancing north, we expect resistance to build around $10,800 and $10,900 respectively.

Otherwise, the technical picture shows a market in the hand bulls’ hands. The Moving Average Convergence Divergence (MACD)’s positive gradient confirms the strong bullish grip. Moreover, the positive divergence signifies the growing energy as buyers increase their positions.

The Relative Strength Index (RSI) in the daily timeframe relatively inclines upwards. The RSI is at the same level it was on August 3 just before the breakout that rose to highs around $12,330. If the gradual movement north continues, Bitcoin could also revisit higher levels around $12,000.

BTC Key Technical Levels

Spot rate: $10,736

Relative change: +167.44

Open: $10,575

High: $10,798.44

Low: $10,564.61

Short-term trend: bearish

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
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