Bitcoin btc
$ usd

Bitcoin Breaks Out From a Crucial Resistance Level

2 mins
Updated by Kyle Baird
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In Brief

  • Bitcoin has broken out from a major resistance area and descending resistance line.
  • Technical indicators are bullish in the long-term but bearish in the short-term.
  • There is support between $11,000-$11,100.
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The Bitcoin (BTC) price has broken out from a crucial resistance level.
After a potential short-term decrease, the price is expected to continue moving upwards towards the next closest resistance area.

Weekly Bitcoin Outlook

During the week of Oct 5-11, the Bitcoin price created a bullish candlestick, increasing from a low of $10,525 to a high of $11,469. While this is a bullish development, the price is still trading below the major $12,000 resistance area, which it has not traded above since July 2019. A breakout above the $11,700 level should allow for the price to increase all the way to $14,000. The increase has been ongoing since BTC re-tested the $10,000 area as support at the beginning of September. Technical indicators are bullish, and the MACD just made a higher momentum bar after having decreased for four weeks in a row.
BTC Weekly Movement
BTC Chart By TradingView

Breakout From Resistance

The daily chart for BTC shows that the price has broken out from:
  • A descending resistance line that had been in place since the Aug 17 high.
  • The $11,200 area, which previously acted as support and is the 0.618 Fib retracement level of the most recent decrease
If the price continues increasing, there is minor resistance at $11,600 and major resistance at $12,070, both coinciding with the aforementioned long-term resistance area outlined in the previous section.
BTC Daily Outlook
BTC Chart By TradingView
Technical indicators in the daily time-frame are bullish. The MACD, RSI, and Stochastic Oscillator are all increasing. Furthermore, the MACD has reached positive territory and the Stochastic Oscillator has made a bullish cross. Therefore, Bitcoin is expected to soon make an attempt at breaking out above $12,000.
BTC Breakout
BTC Chart By TradingView

Possible Retracement

Despite the bullishness from the long-term price action and indicators, the shorter-term chart looks more bearish. The price has been struggling to move above $11,400 and weakness has started to show. The 6-hour RSI has generated some bearish divergence and the MACD has begun to decrease.
Bitcoin Long-Term
BTC Chart By TradingView
The 2-hour chart looks even worse considering the bearish divergence and MACD flipping negative. Therefore, a decrease towards the 0.382-0.5 Fib levels between $11,017-$11,131 would be expected before the upward move continues.
Bitcoin Short-Term
BTC Chart By TradingView
To conclude, the Bitcoin price is expected to eventually make an attempt at breaking out above the $11,600-$12,000 resistance area. A short-term decrease is likely to occur prior to the breakout attempt. For BeInCrypto’s previous Bitcoin analysis, click here! Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...
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