Bitcoin Breaches Critical Resistance Levels, Struggles at $11,500 High

Bitcoin (BTC) regained bullish momentum after a recent bounce above $10,700 support. The recent breakout clears the $11,000 high and the critical resistance zones of $11,100 to $11,300. The king coin will resume upside momentum to retest the $12,000 and $12,400 overhead resistances.

The upside momentum will not be an easy ride as the bulls face resistance at the $11,500 high. Since October 10, Bitcoin has been compelled to a sideways move between $11,200 and $11,500. Buyers are facing penetration difficult at the $11,500 high. On the upside, a break above the $11,500 will propel the coin to retest the $12,000 overhead resistance. Today, BTC price is still hovering above $11,400 high as it continues to retest the next resistance.

Bitcoin indicator reading

As BTC price breaks above the SMAs, the moving averages are at the point of a bullish crossover. This will give a strong buy signal. The crypto is above the 80% range of the daily stochastic. It indicates that the coin has reached the overbought region of the market. In that case, the BTC price may fall. However, in a trending market, the overbought conditions may not hold.

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7,000, $6,000, $5,000  

What is the next direction for BTC/USD?

With the recent price action, BTC is likely to rise. From the daily chart, the coin was resisted at the $11,185, on September 19. The retraced red candle body tested the 38.2 % Fibonacci retracement level. This implies that Bitcoin will rise to the 2.618 Fibonacci extension level. That is a high of $13,345.80.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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