Bitcoin escapes the bear range ($10,200 – $10,500) stepping above $10,700.
A breakout above the rising wedge pattern will propel Bitcoin towards $11,000.
The bulls managed to shake off the bear pressured we discussed earlier today. As mentioned Bitcoin needed to come out of the battle zone between $10,200 and $10,500. Escaping this range has already revived the investors’ hope that Bitcoin will jump above $11,000 in the short-term.
Bitcoin bulls trampled massively on the resistance at $10,500 and $10,600 respectively. A couple of successive candlesticks pushed Bitcoin above the sellers’ congestion zone at $10,700. At the press time, Bitcoin is trading at $10,718 following a 3.19% rise on the day.
BTC/USD 1-hour chart
BTC/USD chart by Tradingview
A number of former resistance zones are transforming into viable support areas. Although momentum is building towards $10,800 hurdle, a reversal may occur. If that happens, $10,700 will function as a credible support area. Traders must be aware and in the lookout for the next possible support zones including $10,400, $10,200 and $10,000.
In the short-term, it is important that Bitcoin is sustained above $10,200. Otherwise, a lower leg could extend below $10,000 and refresh the support areas between $9,200 and $9,300.
On the upside, the major hurdle is the ascending wedge pattern resistance. However, a break above the hurdle will propel Bitcoin above $10,800. Moreover, it will set the ground for an impending leg up to $11,200 and $11,500 in that order.
Technically, Bitcoin is poised for the trajectory above $11,000. The Relative Strength Index (RSI) is now above 70 and pointing north. If the signal moves higher within the overbought, it will signal a stronger trend and price momentum. However, the retreat from the same zone will signal a reversal.
Bitcoin Key Technical Levels:
Spot rate: $10,789
Trend: Strongly bullish.
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