Bitcoin (BTC) Price Analysis – New Channel Pattern May Lead Bitcoin To $12000, Bullish Divergence In Play

Bitcoin (BTC) Price Analysis – New Channel Pattern May Lead Bitcoin To $12000, Bullish Divergence In Play

Bitcoin is back on bullish mode after breaking a symmetrical triangle to a new channel formation, although the $9400 resistance was slightly broken yesterday but got rejected at $9644 on Bitfinex. BTC is currently retracing to $9100, following the channel pattern shaping on the hourly chart. However, Bitcoin is currently trading at $9350 with a $168.5 billion market cap.

Bitcoin (BTC) Price Analysis: Daily Chart – Bullish

Key resistance levels: $9800, $10000, $10350
Key support levels: $9200, $9000, $8820

Yesterday, Bitcoin managed to close above the $9400 to show the market is preparing for another bullish phase. This time, it may take us to $12000 but we need to clear the October 27 high at $10350 before we can validate a stronger surge. If Bitcoin can close well above $9500 today, $9800 and $10000 will be in view. Further resistance above lies at $10350.

BTCUSD, Daily Chart – November 5

For now, support to look out for is $9200 and $9000. Support below lies at $8820 and beyond. Another thing to note here is the RSI and the MACD which has signalled a bullish divergence for Bitcoin. We can expect more bullish sentiment to come into play in future trading.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

The last 24-hours rise has allowed Bitcoin to record a weekly high of $9644 after breaching the four days triangle pattern. As we can see on the hourly chart, BTC is constructing a new ascending channel which may take Bitcoin us to $10000 in the next rally. Currently, the market is retracing back toward the channel’s support at $9200 –$9100. Meanwhile, the $9000 – $8900 zones could serve as support if a channel break-down occurs.

BTCUSD-Hourly-Chart-November-5

Bouncing off the channel’s lower boundary would trigger a bullish impulsive move to $9350, $9500 and $9700 resistance. The RSI is bullish but now positioned in a downward direction. The MACD moving averages are now crossing to signal a potential sell, although remain positive at the moment.

BITCOIN SELL SIGNAL

Sell Entry: $9378
TP: $9189
SL: $9500

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Author : Michael Fasogbon

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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.