The bitcoin exchange rate broke through to the target resistance of $11,900

On October 19, Bitcoin (BTC) accelerated its rise and finally got higher from the consolidation phase that lasted all last week

At the time of writing, the exchange rate of the first cryptocurrency was approaching the highs of September 3 in the region of $11,940.

Bullish breakout

During the week, Bitcoin failed to break through the 0.786% Fibonacci retracement level relative to the previous decline of $11,588. On October 19, the price finally formed a bullish absorption candle and reached a high of $11,840.

There are no bearish divergence signals on the charts, and the MACD is not declining, which means that the growth should continue.  The nearest resistance is located at the September 3 high of $12,067, and the nearest support is at $11,200.

BTC chart. Source: TradingView

Short-term dynamics

The BTC exchange rate also broke through the descending resistance line of October 12. At the same time, the first signs of weakness began to appear on the 6-hour chart in the form of bearish divergence signals from the RSI and MACD.

BTC chart. Source: TradingView

A similar pattern is observed on 2-hour timeframes, although bearish divergence signals have not yet been confirmed.

It is also important to pay attention to the level of $11,700 – as long as the price is above this zone, the upward movement is expected to continue.

BTC chart. Source: TradingView

Wave analysis

In the previous analysis of bitcoin on October 19, we wrote that the price may have completed wave 4 and started the fifth, which should end in the $11,930-$12,030 zone.

The price really started wave 5, the target of which coincides with the previous one. Bitcoin may have completed the formation of sub-waves 1-3 (green on the chart) and now it will have to complete sub-waves 4-5.

BTC chart. Source: TradingView

A longer-term wave analysis reveals a similar goal – a 1:1 A:C wave ratio gives the top at $11,876.

BTC chart. Source: TradingView

Alternatively, we can assume that the bullish analysis contains a series of waves½, and now bitcoin is at the stage of wave 3.

This analysis also points to a target around $11,900. The reaction of the price to this level will help determine the further direction of the trend.

BTC chart. Source: TradingView

So, bitcoin is likely to continue to rise to $11,900, and possibly exceed this level if the resistance does not stand.

You can read the previous analysis of bitcoin here.

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinions expressed in this forward-looking statement do not reflect those of the BeInCrypto editorial board.

Disclaimer


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