Bitcoin took a break from trading during the month of September, with relatively low volatility. As shown on the following 4-hour chart, the marked symmetrical triangle was basically the story of September: Started with a massive dump and a slow consolidation, since then, around $10,600.
As can be seen below, Thursday signaled a breakout – in favor of the Bulls. Since breaking the triangle at $10.8K, we saw a healthy consolidation and finally a breakout of the $11-11.2K area, which was the most recent high.
So far, as writing these lines, today’s daily candle marked $11,500 as the daily high. This is the first resistance to watch.
However, after three consecutive green days, Bitcoin might rest a bit. In case of a correction, the $11,000 – $11,200 support would consider a very healthy retest. A daily close below $11K might change things in favor of the bears.
As we know, Bitcoin has been recently showing a positive correlation with Gold and the equity markets. The past days, especially Thursday and Friday, yielded 2-3% gains across major U.S. markets indexes. Shortly after Friday’s Wall Street close – it was Bitcoin’s turn to show its capabilities.
From a technical point of view, the daily RSI is now at 64-65, its highest point since August 17, 2020. Despite the excitement, the trading volume is still not significant.
As mentioned above, Bitcoin is now facing $11,400 – $11,500 as the first area of resistance. If BTC manages to break above, then $11,800 should be a weak resistance before the $12,000 – $12,100 resistance area.
From below, the first level of support now becomes $11,200, followed by $11,000 and $10,800.
Total Market Cap: $366 billion
Bitcoin Market Cap: $210 billion
BTC Dominance Index: 57.5%
*Data by CoinGecko
