Bitcoin has broken upwards the past week and surged through short term resistance levels and is now approaching important values seen in early September.
The consolidated trading range experienced early last week for BTC/USD did not last long. Breakouts are a common theme for Bitcoin so speculators will not be surprised by the increase in value the cryptocurrency has produced, but what should get their attention is the ability of BTC/USD to sustain higher price levels. Early September highs are now being tested by Bitcoin and if positive momentum is able to remain abundant speculators will certainly have the 12000.00 target in mind.
Trading this morning has BTC/USD currently near the 11450.00 level as a small reversal downward has developed after hitting a high of approximately 11720.00 on Monday. Traders must understand BTC/USD does not move in small waves, its value changes are clear and strong in both directions. Risk management is essential, but having a taste for risk taking is imperative too when trading Bitcoin.
Support for BTC/USD can be interpreted as 11240.000 near term after the fast trading seen the past week. However, the lynchpin for the sudden spike higher appears to have happened when the 11100.00 juncture was broken and created a large gap upwards. Speculators may be tempted to use the 11300.00 vicinity for support if they are looking to sell BTC/USD and pursue the downside action which has been demonstrated the past day.
Speculators who believe BTC/USD is taking a brief pause and catching its breath after a solid move upwards should look to the 11600.00 as a resistance target if they want to pursue buying positions. The question now for BTC/USD is if it will establish a consolidated range and sustain its value. If Bitcoin can maintain its current price range, speculators may believe a test of highs established in August are possible.
After breaking out of a tight range last week, BTC/USD may have the capability to remain rather stable within its current price levels, but traders need to always look for changes in momentum. Limit orders may be a wise choice for BTC/USD traders at the moment in order to take advantage of short term trends. Buying BTC/USD if it can break the 11500.00 level may prove worthwhile. Selling BTC/USD if it breaks below the 11300.00 mark could present opportunities too.
Bitcoin Short Term Outlook:
Current Resistance: 11600.00
Current Support: 11240.00
High Target: 12070.00
Low Target: 10998.00