A strong rally over the weekend pushed Bitcoin from $10,600 to highs of $11,498
The price of Bitcoin hit a high of $11,498 on Coinbase over the weekend, building on a strong rally seen late last week.
BTC/USD is now trading above an ascending triangle, with support at the breakout point likely to provide the impetus buyers need to push to $12,000. Above this level is long term resistance found at $12,500.
The top cryptocurrency is at press time trading around $11,360 but looks strong on the 4-hour chart with the previous hurdle around $11,200 now acting as the immediate support zone.
As can be seen in the daily chart below, the RSI is suggesting a legitimate breakout is in the offing if bulls stay above the ascending triangle.
Bitcoin’s price daily chart showing ascending triangle and RSI breakout.
On the weekly chart, Bitcoin’s candle close at $11,374 was also indicative of the latest momentum. Although the upside has stalled around $11,300-$11,400, staying above current levels could indicate strength. As such, a break above $11,600 near-term would put bulls on course to retest resistance at $12K and then $12,500.
According to technical analyst Mr. Anderson on Twitter, Bitcoin has also printed a weekly RSI close that is historically bullish.
The Bitcoin enthusiast shared the chart below and noted that if the RSI pivot hits 63 on the weekly time frame, BTC/USD would be ready for another leg up.
“A few weeks ago I explained that the Bulls would defend $10.1k [because] they had to. Now BTC has given us a weekly RSI pivot that is extremely common [with] Ultra Bullish BTC moves. A weekly RSI close of 63+ has always provided another LEG up & a 70+ close gives you $16k+,” he added.
Chart showing Bitcoin price RSI on a weekly time frame.
PlanB’s 12-month RSI chart for Bitcoin also shows the metric has cut back above 60.
The RSI chart for BTC.
However, Bitcoin could still face a strong rejection at current levels if selling pressure increases. According to the on-chain data analysis firm IntoTheBlock, 89.28% of over 31.9 million addresses are in profit.
Per the firm, “Bitcoin has a strong bottom,” if bulls run into a strong rejection at $11,600. In that case, the area around $10,900 provides the next major protection zone.