ANALYSIS :Bitcoin price analysis: BTC/USD consolidates ahead of the next leg up to $11,000
- Bakkt starts testing its Bitcoin futures contracts.
- Bitcoin stares into consolidation between $10,400 and $11,800.
BTC/USD trading pair failed to sustain gains above $11,000 during last weekend’s breakout out. A retracement from the highs at $11,123 found balance at the 100 Simple Moving Average (SMA) allowing for correction above $10,500.
Consolidation is setting in the day Bakkt the subsidiary of Intercontinental Exchange (ICE) begins the testing for its Bitcoin futures contracts. Investors can access the contracts on ICE Futures US and cleared which will then be cleared at ICE US. Bakkt intends to add regulated custody as well as monthly margined Bitcoin futures products. This will be made possible by the open seamless global network currently in development.
Bitcoin price technical picture
Bitcoin is exchanging hands at $10,583 at press time. The upside is currently limited by the 50 Simple Moving Average (SMA) 1-h. On the flip side, the 100 SMA is offering immediate support in the same range.
BTC/USD upward movement also continues to struggle with the resistance at $10,700- $10,800. It is important the bulls push the price above this level to avoid a retest of $10,400 support. If the price manages to break above the resistance, there is a possibility Bitcoin could surge above $11,000.
The Bollinger Bands shows the price beginning a consolidation phase. Other technical indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are ranging sideways 54 and 0.0 respectively. If the technicals remain intact, Bitcoin sideways trading will stay between $10,400 and $10,800 before the next leg up towards $11,000.