Bitcoin may see upside activity, trailing at multiple resistance
After a brief downward rally in the most talked of cryptocurrency, Bitcoin, the bottom is said to have been made for now. After hitting 19,892 levels on December 17, Bitcoin witnessed lower tops lower bottoms up to 5,873 levels on February 6.
The cryptocurrency saw a Hammer-like pattern on the said day with volume spurt which suggested momentum going ahead. Thereby Bitcoin has hit above 11,000 mark and is approaching its prior resistance level at 11,690. It had attempted a breakout at 11,690 on February 20 hitting a high of 11,775 levels which was a trend reversal for the currency. However, the price could not sustain the said levels on closing basis and corrected near to its 38.2 per cent retracement level.
Now Bitcoin/USD chart shows a Cup and Handle pattern in the making, with Bitcoin taking multiple resistance at 11,600-11,775 levels. Once the pattern witnesses a breakout on closing basis, we can expect at least 5,000 points upside in the medium term. Above this, we may also see Bitcoin hitting 17,600 in the long run. Even, 14-period RSI is trailing near 60 levels which suggests momentum going forward. Upper Bollinger Band breakout is at 11,810 which is expected to get breached once Bitcoin gains momentum.