Bitcoin has just experienced a big rebound after testing the $9,300 area. As of this writing, it hovers around $10,700. This is great news as it recaptured the previous short term support level around $9,500 (white line). As mentioned in a previous article, Bitcoin has many short term support levels where it can hopefully recover from any dips.
What traders want to see next is a move above $11,000. Such a move would bring the price out of the descending channel (green and red lines) AND out of the trading range of $9,500 – $11,000 (yellow box). Of course traders should want to see any break out above $11,000 have volume and staying power. Which would make $11,000 a new support level rather than resistance. For now, we’ll see if the current trading range holds and if this recovery spurs a breakout to test recent highs.