• A strong support base is forming near the $9,700 level after a strong decline.
• A swing low was formed at $9,679 before the price started a strong upward move.
• Yesterday’s crucial declining channel was breached with resistance near $10,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is currently gaining momentum above $11,200 and it could accelerate towards $12,000.

There was a strong bounce in bitcoin price above the $11,000 level against the US Dollar. BTC price is up more than 10% and it could continue to rise towards $12,000 in the near term.

Bitcoin Price Analysis

Yesterday, there was a downside extension below $10,000 in bitcoin price against the US Dollar. The BTC/USD pair traded to a new monthly low at $9,679 before the bulls took a stand. There was a major reversal pattern formed and the price climbed sharply above the $10,000 and $10,500 resistance levels. It even cleared the $10,850 resistance area and the 100 hourly simple moving average.

Moreover, yesterday’s crucial declining channel was breached with resistance near $10,120 on the hourly chart of the BTC/USD pair. The pair surged above the 50% Fib retracement level of the last major drop from the $12,310 high $9,679 swing low. It is now trading nicely above the $11,400 level and the 100 hourly SMA. An immediate resistance is near the $11,700 level.

Moreover, the 76.4% Fib retracement level of the last major drop from the $12,310 high $9,679 swing low might act as a resistance. If there is an upside break above the $11,700 level, bitcoin price is likely to test the $12,000 resistance. Any further gains could push the price towards the key $12,500 resistance area.

On the downside, an immediate support is near the $11,400 level. However, the main support is near the $11,200 level and the 100 hourly simple moving average. If the price fails to stay above the 100 hourly simple moving average, it could correct lower towards the $10,800 support area. Any further losses might push the price back towards the $10,200 support area.

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Looking at the chart, bitcoin price is clearly surging and it seems like a fresh bottom is in place near $10,000. If it clears the $12,000 level, it will be a strong bullish signal. In the mentioned case, the price could continue to rise towards the last major swing high near $13,500.

Technical indicators:

Hourly MACD – The MACD is gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 55 level, with a bullish angle.

Major Support Levels – $11,400 followed by $11,200.

Major Resistance Levels – $11,700, $12,000 and $12,200.

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