Story by: Joseph Young
By CCN Markets: Since August 15, in less than five days, the bitcoin price (BTC) has increased from $9,500 to $10,700 by well over 12 percent against the U.S. dollar.
At the day’s high, the bitcoin price spiked to as high as $10,950 on major regulated cryptocurrency exchanges, demonstrating a strong short term trend reversal.
TRADERS AWAIT BITCOIN TO BREAK KEY RESISTANCE
Many traders foresee a high level of volatility as BTC attempts to break above a key resistance level at the $10,900 to $11,000 range.
Scott Melker, a trader at Texas West Capital, stated that $10,890 has been acting as a strong resistance level following the breakout of bitcoin.
“This is how I am watching it on the hourly chart. Holding the major ascending support, presently in a small trading range with a likely pennant formed. Red line ($10,890) is key resistance,” he said.
After the bitcoin price briefly broke above the resistance level, Melker said that the trading sentiment has become difficult for both bears and bulls in the bitcoin market.
“Beautiful. Hourly candle (which was also the daily close) closed above the red resistance and is presently retesting as support. Price moved out of the pennant and trading range after wicking up and down to make life difficult for bulls and bears alike.”
Josh Rager, a technical analyst, explained that in a larger time frame, a break above $10,977 as a resistance level could signal the start of a new bull run for the dominant cryptocurrency.
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