- Triangle breakout propels Bitcoin close to $12,000.
- Further correction upwards is still limited with $12,000 being the immediate resistance.
Bitcoin buyers are finally coming out of hibernation on the first day of the week. Although the price sustained the position above $11,000 over the weekend, the upside remained capped under $11,750. Interestingly, the hourly chart shows BTC/USD trading above a trendline that has been forming since the recent deep to lows around $9,7660.
BTC/USD 1-h chart
The consolidation price since Friday last week led to the formation of a contracting triangle pattern. In technical analysis, triangle breakouts can be either be bullish or bearish. In this case, the symmetrical triangle resulted in a spike above the upper trendline. Bitcoin bulls pushed the price higher towards $12,000 forming a weekly high at $11,995 (on Coinbase).
Further correction upwards is still limited with $12,000 being the immediate resistance. BTC bulls must overcome this resistance in order to open the way for gains above $12,500 and $13,000 in the near-term.
At the time of writing, Bitcoin is trading at $11,867 amid a building bearish momentum due to the failure to break above $12,000. The weekend resistance at $11,750 will now function as support while $11,500 is among the most significant support areas. Other support levels to look out for include $11,000, $10,500 and $10,000.
In a technical perspective, the momentum is still bullish at press time. The Moving Average Convergence Divergence is holding ground in the positive region. The divergence suggests higher buying power. The Relative Strength Index (RSI) is retreating from the oversold to show that bulls are getting exhausted after failing to trade past $12,000 hurdle.
Bitcoin Key Technical Levels
100 SMA 1-h: BTC is trading above the moving average after the breakout.
MACD 1-h: Increasing divergence shows bulls still the energy to push BTC higher.
RSI 1-h: Retreat from the oversold shows the bulls getting exhausted but the trend is still bullish.