Bitcoin Price Analysis — October 11

Bitcoin Price Analysis — October 11

Bitcoin (BTC) finally broke away from the trading pattern in September, which was plagued with low volatility. As can be observed in our 4-hour chart, the wedge was the whole story of September summarized; beginning with a huge slump and followed by a directionless consolidation.

Thursday was a turnaround point for bulls after BTC finally cleared the $10,800 resistance. Since then, the cryptocurrency has seen a healthy climb to a new two-month high around $11,500. However, BTC retreated from its recent high and now trades around the $11,400 level. This makes the $11,500 resistance the first hurdle to scale. 

That said, following the cryptocurrency’s three-day rally, we should expect to see relaxation on price action in the meantime. We should expect a mild correction to the $11,200 – $11,000 region. A break below this region could swing the pendulum in favor of the bears. 

Meanwhile, Bitcoin continues to show a strong positive correlation with Gold (XAU/USD) and the equity markets. The major US market indexes yielded about 3% cumulatively through Thursday and Friday. Shortly after Wall Street’s close on Friday, Bitcoin took the mantle of bullishness and rode it out. 

As mentioned already, consolidation is already starting to set in and could remain so for the coming hours.

BTCUSD – 4-Hour Chart

Key Technical Levels to Monitor in the Near-Term

The key level to watch out for remains $11,500. A break above that level could open the doors to $11,800 region and higher. That said, we could see Bitcoin reclaim its YTD high after a modest retrace. 

On the flip side, a break below $10,800 could trigger a sell rush. 

Total market capital: $354.4 billion

Bitcoin market capital: $210 billion

Bitcoin dominance: 59.3%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.