Bitcoin started a strong rise after it cleared the $10,950 and $11,000 resistance levels. At the time of writing, the price is trading at $11,344. There was a break above a major contracting triangle with resistance near $10,750 on the 4-hours chart of the BTC/USD pair according to Kraken. The pair could correct lower, but buyers are likely to remain active near $11,200 and $11,000.
This past week, bitcoin struggled to clear the $10,800 and $11,000 resistance levels against the US Dollar and rise. Eventually, the bulls took the control and the price climbed sharply above $11,000.
This rally was initiated after there was a break above a major contracting triangle with resistance near $10,750 on the 4-hours chart of the BTC/USD pair. The upward move even broke the $11,200 resistance.
It tested the $11,500 zone and a new monthly high is formed at $11,500. The price is now trading well above $11,300.
It looks like there is a short-term bullish continuation pattern forming with resistance near $11,400. On the downside, the triangle support is near $11,250 and the 50% Fib retracement level of this rally from the $11,029 swing low to $11,500 high.
If there is an upside break above the $11,400 level, the price of Bitcoin seems to clear the $11,500 high as well and rise. The next major hurdle for the bulls is near $11,800. Any further gains could lead bitcoin towards the $12,000 resistance level.
If bitcoin starts a downside correction, the triangle support at $11,250 might provide support. The next major support is near the $11,200 level or the 61.8% Fib retracement level of this recent rally from the $11,029 swing low to $11,500 high.
A downside break below the $11,250 and $11,200 support levels could be the beginning of a steady decline towards the $11,000 support (key resistance turned support).