Bitcoin price briefly surpassed the critical $11,000 level today before dropping back down. Currently, the coin is trading around $10,900 as of 3 PM EST. On the bright side, it almost reached a high of $11,200 earlier today, and it’s been stabilized at around $11,000 throughout most of the week. Importantly, BTC has been trading above $10,000 since Tuesday.
BTC/USD On Another Bull Run?
Despite not being able to hold $11,000 several times, a bullish trend has formed for BTC. A major support level was set at just above $10,750. A series of highs have been broken through since then, testing a major resistance of $11,050. This is one of the longest bullish trend (in terms of hours) BTC has been on this week.
In addition, BTC trading volume picked up during earlier hours, but it was still not comparable to the levels seen in January. Recent volumes may also be a reason that BTC couldn’t completely break above $11,000 and go beyond.
On the technical side, the 20-day moving average indicates that BTC could break out soon and may test $11,000 again. The MACD line is also showing a weak bullish sign, but the real indication comes from the candlestick patterns.
A head-and-shoulders pattern was formed just before the bullish trend. The ascending trend line is likely to continue for a while and a bullish reversal is imminent. The most optimistic scenario is for BTC to approach or even surpass $11,000 later in the day, and there’s a good chance this happens.
Looking at the Technical Indicators:
- Hourly MACD — BTC is in a bullish zone
- Candlesticks and Moving Averages — A bullish pattern is established
- Major Support Level — $10,750
- Major Resistance Level — $11,050
Featured Image: Twitter
Molly Jane is a Russian Literature major from California with a background in writing. She joins CurrencyTimes after working as a freelance journalist and blogger.