Bitcoin is currently consolidating in a range above the $10,700 support against the US Dollar. BTC is likely to start a fresh surge as long as it is above the 100 hourly SMA.
- Bitcoin is trading in a contracting range above the key $10,700 support zone.
- The price seems to be facing a couple of key hurdles near the $11,200 and $11,250 levels.
- There is a major contracting triangle forming with resistance near $11,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must stay above the 100 hourly SMA and $10,700 to start a fresh surge.
Bitcoin Price is Consolidating Gains
After a strong rally, bitcoin price started consolidating gains below the $11,250 resistance against the US Dollar. BTC corrected lower a couple of times, but it remained well bid above the $10,700 support.
It seems like the bulls are protecting the uptrend above $10,700 and the 100 hourly simple moving average. The recent swing low was formed near $10,828 before the price recovered higher. It surpassed the $11,000 resistance, plus the 50% Fib retracement level of the recent decline from the $11,348 high to $10,828 low.
However, the price seems to be struggling to settle above $11,200 and $11,250 resistance levels. There is also a major contracting triangle forming with resistance near $11,240 on the hourly chart of the BTC/USD pair.
Bitcoin price holding $10,700. Source: TradingView.com
The triangle resistance is close to the 76.4% Fib retracement level of the recent decline from the $11,348 high to $10,828 low. A successful close above the $10,250 resistance may perhaps spark a strong surge.
The next major resistance is near the $11,350 and $11,400 levels, above which the bulls are likely to aim an upside break above the $11,500 resistance level in the coming sessions.
100 SMA Holds The Key For BTC
On the downside, the triangle support is near the $10,850 level and the 100 hourly SMA. If there is a downside break below the $10,850 support, there is a risk of more losses.
The main support is near the $10,700 level, below which the bears are likely to take control in the short-term. In the mentioned case, the price may probably start an extended downside correction towards the $10,500 level.
Technical indicators:
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level, with a bearish angle.
Major Support Levels – $10,850, followed by $10,700.
Major Resistance Levels – $11,250, $11,400 and $11,500.
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