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

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Published 05 Oct, 2020 | 01:52:30 AM UTC

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 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

John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

Published by

John Isige

Published 05 Oct, 2020 | 01:52:30 AM

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