Bitcoin Price Working Its Way Up Toward Resistance (will it break t...

With a few consecutive days of positive price movement in Bitcoin, we must keep our eyes on coming levels of resistance as they could be a stopping point for the current move.

Plenty of Action at the 11,500-11,700 area

With bitcoin trading at 10,900 as I type this we are just one good leg up to reach this area so let's discuss why this could be the next point of price resistance.

Looking at the chart we see two things at that price area:

A previous top (blue arrow pointing at it)
The top trendline of the descending channel

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Outlook

I normally look at previous tops as possible pivot points, but if you look at the top line of the descending channel you will see in just a couple days progression that line is right in that same are.

This means if we are going to see BTC price establish above 11,700 (and I mean establish not just trade through it and pullback) we will need to see it breakout of the descending channel it has been in the past two months.

So lets keep an eye on that to see how it plays out. BTC needs to get out of this descending channel for us to technically be bullish. As of right now we are just getting a nice bounce to the top to the channel.