Bitcoin prepares for a new attempt to overcome its resistance

IN BRIEF

  • Bitcoin is trading above the $10,200 support. Resistance is seen at $11,200.
  • Technical indicators in the daily data are bullish.
  • The BTC is in a bullish momentum.

The price of Bitcoin (BTC) is always above an important long-term support. It is expected that it will eventually try to break above the $11,200 zone again.

Its passage or rejection of this resistance will likely determine the direction of the main trend.

Bitcoin’s Weekly Consolidation

The weekly chart shows that the CLC is still moving above the long-term support of $10,200. After validating this area with a lower strand two weeks earlier, the price then consolidated above it. Currently, the movement looks like a new test of an old resistance zone, which should now act as support.

Technical indicators are bullish. The RSI is above 50 and may have started to rise. The Stochastic Oscillator is doing the same, and no bearish divergence is developing.

The BTC is struggling to overcome its resistance

The one-day chart supports the presence of buying pressure, as seen in the bullish Japanese candlestick overlay on September 24 and the long lower wick on October 2.

That said, the BTC is facing very strong resistance at $11,200, which also corresponds to the 0.618 fibonacci level and a previous support zone. Similarly, the $11,200 resistance coincides with a possible downhill resistance line that would connect the two most recent lower peaks.

Until Bitcoin is able to move beyond this zone, the upward trend cannot be confirmed.

Technical indicators are bullish :

  • The MACD is rising and has almost reached positive territory.
  • The stochastic RSI has formed a bullish cross and is on the rise

That said, the RSI is below 50 and is facing resistance from the descending line.

Based on these technical indicators, it seems likely that the BTC is once again testing the $11,200 zone.

Short-term movement

In the shorter term 2 hour chart we see that the price has been rejected by the 0.618 fibonacci level, in addition to validating the previous upward support line.

If the price fails to pass this zone, it could decline to the $10,500 level before attempting to breach the resistance level again. Otherwise, it could immediately return to this zone and continue to rise.

The waves of the BTC

The Bitcoin Up price started an upward momentum on September 9 (in orange below) and seems to be currently in its wave 3.

Within this wave 3, the course has completed sub-wave 1 and 2 (in blue) and has just started its third wave. The latter could end between $11,985 and $12,314.

In conclusion, it is possible that the CLC has completed its correction and will begin to increase in the near future. If it passes and validates the $11,200 zone, it would probably confirm these forecasts.