The price of Bitcoin (BTC) increased considerably during the week of Nov 1-9, nearly reaching a crucial long-term resistance level at $16,150.
While short-term decreases could occur, the price is expected to eventually reach this resistance in the near future.
Bitcoin Approaches Long-Term Resistance
The Bitcoin price increased significantly over the past week and reached a high of $15,968. BTC created a bullish candlestick with a very small upper wick, suggesting that sellers do not have enough strength to push the price down.
This was only slightly below the main resistance area of $16,145, which is the 0.786 Fib level of the entire decrease measuring from the December 2017 all-time high price.
Furthermore, technical indicators do not yet show any weakness, and both the MACD and RSI are increasing, Although the RSI is overbought, there is no bearish divergence in either indicator, so it’s likely that the upward move will continue in the long-term.
A breakout from the $16,145 resistance level could open the way for a move all the way to the all-time high price near $19,700.
Similar to the weekly chart, the daily chart does not show any clear signs of weakness. While the price seemingly began a downward movement on Nov 7, it followed that up by creating a bullish piercing pattern the next day (highlighted below) and closed near the top of the preceding bearish candlestick.
Similarly, technical indicators show overbought levels but not bearish divergence, a sign that the upward movement could continue.
In the shorter-term two-hour chart, the price has already broken out from a descending resistance line (dashed) and validated it as support afterward.
This makes for the possibility that BTC is following an ascending support line, which currently coincides with the $15,100 minor support area.
Technical indicators are still bullish since the MACD is above 0 and increasing, while the RSI is above 50.
Therefore, while the price could decrease in the short-term, possibly to validate the $15,100 area and the ascending support line, it is expected to eventually make another attempt at breaking out above $16,150.
To conclude, the BTC price is attempting to find support after retracing from a considerable increase over the past week. Once support is tested, the upward move is expected to continue.
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.