A decent support base is formed by bitcoin price above the $11,000 level against the US Dollar.

The price is facing a few key resistances near the $11,500 and $11,600 levels.

There is a major contracting triangle forming with resistance near $11,475 on the hourly chart of the BTC/USD pair (data feed from Kraken).

It seems like the bulls are preparing for an upside break above the $11,500 resistance area.

Bitcoin price is slowly gaining bullish momentum above $11,200 against the US Dollar. BTC could rise sharply once it settles above $11,500 in the near term.

Bitcoin Price Analysis

After forming a support base near $10,800, bitcoin price recovered steadily against the US Dollar. The BTC/USD pair traded above the $11,000 and $11,200 resistance levels to move into a positive zone. The upward move was steady above the $11,400 level and the 100 hourly simple moving average. Moreover, the price traded above the $11,500 resistance level, but it struggled to gain pace above $11,600.

A swing high was formed near $11,624 and recently the price corrected lower. It broke the $11,500 level and the 100 hourly SMA. Moreover, there was a spike below $11,400 plus the 23.6% Fib retracement level of the last wave from the $10,995 low to $11,624 high. However, the price found support near the $11,350 level. The 50% Fib retracement level of the last wave from the $10,995 low to $11,624 high also provided support.

At the outset, there is a major contracting triangle forming with resistance near $11,475 on the hourly chart of the BTC/USD pair. If bitcoin price climbs above the $11,500 resistance, it could start a decent upward move. The price may perhaps gather bullish momentum once it clears the recent high near $11,624. On the upside, the next key resistance is near the $12,000 level, above which the price could test the $12,400 level.

Conversely, if there is no upside break, the price may test the triangle support near $11,200. If there is a downside break below the $11,200 support, the price might decline sharply towards the next major support near $10,800.

Looking at the chart, bitcoin price is clearly preparing for the next major move either above $11,500 or towards $10,800. If there is a successful close above $11,500 and $11,650, the bulls are likely to take control and push the price towards the $12,000 and $12,400 levels in the coming days.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level, with a positive angle.

Major Support Levels – $11,200 followed by $11,000.

Major Resistance Levels – $11,500, $11,600 and $12,000.