Bitcoin (BTC) is in bullish momentum as price breaks the range-bound zone of $11,200 and $11,440. The current momentum could not break the resistance at the $11,500 high.
Since October 12, buyers have made three unsuccessful attempts to break the resistance at the recent high but to no avail. Sellers have been defending the price level for some time. The major reason is that the coin has been trading in the overbought region of the market.
This is where sellers emerge to push prices downward. However, in a strong trending market, the overbought condition may not hold. On the upside, the king coin will have price acceleration if the $11,500 is breached and the momentum is sustained. Perhaps, a retest of the $12,000 overhead resistance is possible. However, the sustenance of the bullish momentum is doubtful after the overhead resistance.
BTC is at level 61 of the Relative Strength Index period 14. It indicates that the coin is in the bullish trend zone. It is above the centerline 50, capable of a further upward move. The SMAs are sloping upward indicating the uptrend.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7,000, $6,000, $5,000
Bitcoin has another chance of retesting the $12,000 overhead resistance once the resistance is cleared. On October 12 uptrend, the coin was resisted but the retraced candle body tested the 78.6 % Fibonacci retracement level. This explains that BTC will rise and retest level 1.272 Fibonacci or the $ 12,093.50 high. However, the coin may be compelled to retrace to the 78.6 % Fibonacci retracement level.
Disclaimer. This analysis and forecast are the personal opinions of the author and not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.