Bitcoin Technical Analysis: BTC/USD Poised For Recovery Above $11,000

John Isige Bitcoin News published October 5, 2020 | modified October 5, 2020

Bitcoin Technical Analysis: BTC/USD Poised For Recovery Above $11,000

  • Bitcoin nurtures an uptrend after building on the support at $10,400 over the weekend.
  • The pioneer cryptocurrency looks forward to a symmetrical triangle breakout, targeting levels past $11,000.

Bitcoin is on its way to recovery towards $11,000. The reversal comes after the flagship cryptocurrency plunged to $10,400 last week. At first, price actions to the north were lethargic mainly due to the resistance at $10,600. However, BTC is currently exchanging hands above $10,700 amid a consistent push by the bulls for gains towards $11,000.

The bellwether cryptocurrency has stepped above both 50 Simple Moving Average and 100 SMA in the 4-hour timeframe. In addition, the Relative Strength Index (RSI) highlights the uptrend as it closes in on the overbought area. The RSI indicates to the trader how strong a particular trend is and if the asset is overbought or oversold.

BTC/USD 4-hour chart

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

For now, the path of least resistance seems to be to the upside. Meanwhile, Bitcoin is trading within a symmetrical triangle. This pattern is used in technical analysis to signal either a breakout or a breakdown. A breakout takes place above the upper trendline and a breakdown happens beneath the lower trendline. Breakouts are characterized by an increase in volume. Therefore, if the uptrend continues, there is the likelihood of a breakout coming into the picture and sending Bitcoin significantly above $11,000.

Simultaneously, resistance is expected at $10,800. If bulls fail to break this hurdle, a reversal could occur and may revisit the support at $10,600. The 50 SMA and 100 SMA are in line to offer support, possibly prevent losses towards $10,600. In the meantime, holding above $10,700 is key to the uptrend and the potential breakout from the symmetrical triangle.

Bitcoin Intraday Levels

Spot rate: $10,705

Relative change: 28

Percentage change: 0.3%

Trend: Bullish

Volatility: Expanding

Read more: CFTC Sues BitMEX For Violating Bank Secrecy Act ; Bitcoin Bears The Brunt 

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