Weekly Bitcoin OutlookDuring 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.
Breakout From ResistanceThe 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
Possible RetracementDespite 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. 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. 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.
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.