Bitcoin Breaks Out From a Crucial Resistance Level

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The Bitcoin (BTC) price has broken out from a crucial resistance level.

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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.

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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 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 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 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.

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.

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.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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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 for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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