Bitcoin about to break $ 11,000: Currently, the technical indicators of Bitcoin are looking very bullish. It is trading around the $ 10,800 mark. After creating an intermediate bottom during the weekend, it has been consistently rising. However, the rise has been accompanied by a slight uptick in volumes.
Currently, most of the indicators of Bitcoin are positive. This is the reason why many traders expect it to break $ 11,000 pretty soon. It is trading with an increase of approximately 7% on most of the exchanges.
From the weekend lows which it created, it is up by almost 14%. Currently, it is looking to hit the 10-week moving average which is along the $ 11,400.
The rally has continued all the way from $ 9300 which it hit on the weekend.
On the other hand, the relative strength index currently is indicating the overbought conditions. However, if momentum persists and the volume increases, it can still hit the 10-week moving average quite easily.
Also, currently, it has created an inverse head and shoulders pattern. This will mean that after it crosses $ 12,000, it can rise up significantly. This is the reason why investors will be witnessing the band from $ 11,500-$ 12,000 pretty carefully. If it surpasses this band in the next couple of weeks, it can rise significantly. This will provide it with the leeway of almost 15% in the next few weeks.
Currently, a lot depends on the volumes which are generated in the next 24 to 48 hours. If indeed, the volumes are on the higher side, it will be able to break through the resistance of $ 11,400 quite easily. If it manages to stay above that level for a significantly longer period of time, it will, in turn, move even higher to the levels which we just as suggested above.
With the week just starting, there is plenty of time for Bitcoin to gain traction. Normally, on the weekends, the trading is lackluster. However, during this week it is expected that it will certainly surpass $ 11,400 in order to head to even higher levels.
If that happens, it will also mark a positive month for Bitcoin after the carnage which it had witnessed in the month of January. This will induce more optimism among the traders as a reversal indication will occur if it manages to cross the $11300 levels. Thereafter, it can easily climb to $14,000 levels.