In the past two days, there was a steady rise above $10,500 in bitcoin price above $10,000 against the US Dollar. The BTC/USD pair settled above the $11,000 resistance and the 100 hourly simple moving average to move into a positive zone. Moreover, the price broke the $11,200 resistance and tested the $11,500 resistance (as discussed in the weekly forecast). The recent rise was strong as the price traded to a new weekly high at $11,646.
At the outset, the price is consolidating gains near the $11,500 level. An immediate support is near the $11,500 and $11,450 levels. Moreover, the 23% Fib retracement level of the recent rally from the $10,841 low to $11,646 high is also near the $11,450 level to act as a strong support. If there is an extended downside correction, the next support for the bulls could be near the $11,200 level.
Additionally, the 50% Fib retracement level of the recent rally from the $10,841 low to $11,646 high could also provide support near the $11,250 level. The main support zone is near the $11,000 level, which was a resistance earlier and now it could provide support. More importantly, there is a key bullish trend line forming with support near $10,900 on the hourly chart of the BTC/USD pair.
A successful break above $11,650 might open the doors for a move towards the $12,000 level. Looking at the chart, bitcoin price is showing a lot of positive signs above the $11,200 and $11,500 levels. The price action suggests that there could be a short term downside correction before more gains above the $11,650 level.
