Bitcoin is currently consolidating in a range above the $10,700 support against the US Dollar. BTC is likely to start a fresh surge as long as it is above the 100 hourly SMA.
- Bitcoin is trading in a contracting range above the key $10,700 support zone.
- The price seems to be facing a couple of key hurdles near the $11,200 and $11,250 levels.
- There is a major contracting triangle forming with resistance near $11,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must stay above the 100 hourly SMA and $10,700 to start a fresh surge.
Bitcoin Price is Consolidating Gains
After a strong rally, bitcoin price started consolidating gains below the $11,250 resistance against the US Dollar. BTC corrected lower a couple of times, but it remained well bid above the $10,700 support.
It seems like the bulls are protecting the uptrend above $10,700 and the 100 hourly simple moving average. The recent swing low was formed near $10,828 before the price recovered higher. It surpassed the $11,000 resistance, plus the 50% Fib retracement level of the recent decline from the $11,348 high to $10,828 low.
Bitcoin price holding $10,700. Source:The triangle resistance is close to the 76.4% Fib retracement level of the recent decline from the $11,348 high to $10,828 low. A successful close above the $10,250 resistance may perhaps spark a strong surge.
100 SMA Holds The Key For BTC
On the downside, the triangle support is near the $10,850 level and the 100 hourly SMA. If there is a downside break below the $10,850 support, there is a risk of more losses.The main support is near the $10,700 level, below which the bears are likely to take control in the short-term. In the mentioned case, the price may probably start an extended downside correction towards the $10,500 level.
