Trading Bitcoin: $11k Resistance Broken, New ATHs Incoming?

Resistance Broken, New ATHs Incoming?

After last week’s Fed announcement, the S&P 500 and US Dollar began to tank in value. Subsequently, Gold and Bitcoin promptly increased. Currently, Bitcoin is up 7% on the day and is trading at a price of $11.7k. In last week’s article, we noted that Bitcoin’s trend had a bearish posture unless Bitcoin could break above the previous lower high at $11k. Bitcoin has smashed through resistance at $11k and is now in a bullish posture. If Bitcoin breaks above its prior high at $14k, it is probable that we will see new all-time highs before 2020.

Daily

On the daily chart above, Bitcoin has now negated its tentative descending triangle and is testing upward to new resistance at $12.8k. Bitcoin is on a green 6 of 9 candle and may have three more days of potential upside before a possible reversal. Previously, we analyzed Bitcoin with a bearish bias due to the posture of the trend. However, now that Bitcoin has increased past its previous lower high, the posture of the trend is bullish.

Weekly

Amazingly, Bitcoin has reversed on the weekly chart to a green 1. According to the sequential theory, it is preferable to wait for a green 2 above a green 1 candle in order to place a long trade on a weekly timeframe.

Conclusion

With the Fed announcement crashing markets last week, Bitcoin and gold have rallied and broken through key resistance levels. After breaking above $11.5k, Bitcoin’s trend now has a bullish posture and is looking to retest new resistance levels at $12.8k and $14k. Critical support remains at $9.5k (0.382 fibonacci level).