Bitcoin technical analysis update for Monday 11 October 2021.
Another lovely weekly candleconfirming a break through both the sloping resistance (blue line) and the $ 52,944 level, confirming a larger high and breaking the anticipated bearish structure (lower lows + lower highs). Now the price has approached the last important resistance on the weekly chart - the blue supply zone.
Bitstamp had a moment of extreme yesterdayvolatility, when one huge sell order plummeted the price, and then it was quickly bought back. This is why yesterday's candle looks so crazy on this chart. Anyway, Bitcoin is currently trading at the resistance level on the daily timeframe. A daily candle close above this zone would be extremely bullish, showing a full recovery in price after the May 19 dump that started from this very level.
RSI is about to enter the zone againOverbought and should continue to rise to avoid any bearish divergence. In my opinion, this is the key point for Bitcoin. The market has come up to serious resistance on most timeframes and now we need to see what happens.
In the Bollinger Bands on the daily chart, we see a significant expansion and the price is trading near the upper border of the indicator. The picture is extremely bullish.
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