Bitcoin Price Keeps Climbing – Are We Hours Away From a Major Breakout?

[Ben Graham]

Bitcoin price is moving higher above $116,650. BTC is now facing hurdles and might extend gains if it clears the $118,000 resistance zone.

• Bitcoin started a fresh increase above the $116,500 zone.
• The price is trading below $116,500 and the 100 hourly Simple moving average.
• There is a key bullish trend line forming with support at $115,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might start another increase if it clears the $117,850 zone.

Bitcoin Price Eyes More Gains

Bitcoin price started a fresh upward wave above the $116,000 zone. BTC managed to climb above the $116,200 and $116,500 resistance levels.

The bulls were able to push the price above $117,500. The price traded as high as $117,920 and recently started a downside correction. There was a move below the $117,200 level. The price dipped and tested the 50% Fib retracement level of the upward move from the $115,247 swing low to the $117,920 high.

However, the bulls were active near $116,750. Bitcoin is now trading above $116,500 and the 100 hourly Simple moving average. Besides, there is a key bullish trend line forming with support at $115,800 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $117,500 level. The first key resistance is near the $117,850 level. The next resistance could be $118,000. A close above the $118,000 resistance might send the price further higher. In the stated case, the price could rise and test the $118,500 resistance level. Any more gains might send the price toward the $118,800 level. The next barrier for the bulls could be $119,250.

Another Drop In BTC?

If Bitcoin fails to rise above the $117,850 resistance zone, it could start a fresh decline. Immediate support is near the $116,550 level. The first major support is near the $115,800 level or the trend line and the 76.4% Fib retracement level of the upward move from the $115,247 swing low to the $117,920 high.

The next support is now near the $115,250 zone. Any more losses might send the price toward the $114,500 support in the near term. The main support sits at $112,500, below which BTC might decline heavily.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $116,550, followed by $115,800.

Major Resistance Levels – $117,850 and $118,000.