Yesterday, the BTC/USD pair made a strong increase and traded high above the $10,000 resistance level. It extended its rally above the $10,200 and $10,500 resistance levels to settle above a couple of crucial hurdles. Moreover, there was a break above the $11,000 level and the price settled well above the 100 hourly simple moving average (SMA).
A new monthly high is formed close to $11,422 and BTC is currently consolidating gains. The price corrected lower below the $11,200 level. However, the 50% Fib retracement level of the recent uptrend from the $10,275 swing low to $11,422 high acted as a strong support to prevent further losses. It is close to the $10,850 support level.
Notably, there is also a major bullish trend line forming on the BTC/USD hourly chart, with support close to $10,800. The trend line is close to the 61.8% Fib retracement level of the recent uptrend from the $10,275 swing low to $11,422 high. The hourly MACD for the pair is currently losing momentum in the bullish zone. Its hourly RSI (Relative Strength Index) is now correcting lower from the 70 level.
On the upside, the $11,500 level is acting as a major resistancefor the bulls. A successful break above the $11,400 and $11,500 levels may perhaps pave way for a sharp increase in the near term. The next target for the bulls in the coming sessions couldlikely be $12,000.
Conversely, if there is a downside correction, BTC is likely to find strong buying interest near the $11,000 and $10,800 levels. The main support is now close to the trend line and $10,500.Any further losses could push the price towards the $10,300 support zone in the coming sessions. The next major support is close to the $9,800 level and the 100 hourly SMA.