Key Bitcoin Indicators Suggest Strengthening Case For Rally Above $ 11.5K

Bitcoin price maintains significant support near the $ 11,230 level against the US Dollar. BTC is likely to rise above $ 11,500 as long as it is above the $ 11,000 pivot level. Bitcoin started a downward correction after it failed to clear the $ 11,600 resistance zone. The price is still trading well above the $ 11,000 pivot level and the 100 simple moving average (4-hourly). There is a declining channel or bullish flag pattern forming with resistance near $ 11,450 on the 4-hour chart of the BTC / USD pair (data feed from Kraken). The pair could start a strong bullish move once it breaks above the major resistance levels of $ 11,450 and $ 11,500.

Bitcoin Holding Key Support

Last week, bitcoin attempted a fresh break to the upside above the $ 11,550 and $ 11,600 resistance levels against the US Dollar. However, the BTC / USD pair failed to gain traction above $ 11,600. A high was formed near $ 11,627 before the price started a new decline. It broke the $ 11,500 support level and retested the main support zone of $ 11,200. A low is forming near $ 11,200 and the price is currently correcting higher. There was a breakout above the $ 11,300 level. Bitcoin is still trading well above the $ 11,000 pivot level and the 100 simple moving average (4-hours). It surpassed the 23.6% Fib retracement level of the recent decline from the high of $ 11,627 to the low of $ 11,200.

Source: BTCUSD on TradingView.com It looks like a declining channel or bullish flag pattern is forming with resistance near $ 11,450 on the 4-hour chart of the BTC / USD pair. An immediate resistance is near the $ 11,420 level as it is close to the 50% Fib retracement level of the recent decline from the $ 11,627 high to $ 11,200 low. To start a new rally, the price must break the $ 11,420 level and the channel resistance. The next key resistance is near the $ 11,500 level, above which the price could even break above the $ 11,600 and $ 11,700 level. Any further gains could push Bitcoin towards the $ 12,000 resistance level.

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The downsides could be limited in BTC

If bitcoin fails to clear the channel resistance or $ 11,500, there is a risk of a further decline. The main support on the downside is near the $ 11,230 and $ 11,000 levels. A downside break below the $ 11,230 and $ 11,200 support levels could initiate a sharp decline towards the $ 11,000 support (key resistance became support). 4-hour MACD Technical Indicators – The MACD for BTC / USD is likely to move into the bullish zone. 4 hours RSI (Relative Strength Index) – The RSI for BTC / USD is now just above the 50 level. Major Support Level – $ 11,200 Major Resistance Level – $ 11,450

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