Analysis

Bitcoin Could Avoid a Major Reversal if it Stays Above One Key Support

Bitcoin is declining and trading well below the $ 12,000 pivot level against the US Dollar. BTC must stay above the $ 11,100 support zone to start a fresh increase in the near term.

  • Bitcoin is struggling to recover and it is trading well below $ 12,000 and $ 11,800.
  • The price is currently holding a couple of strong supports above $ 11,350 and $ 11,100.
  • There was a break above a connecting bearish trend line with resistance near $ 11,610 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is struggling to recover above $ 11,700 and it is trading well below the 100 simple moving average (4-hours).

Bitcoin is Facing Hurdles

This past week, bitcoin, Ethereum and ripple started a major downside correction against the US Dollar. BTC settled below the key $ 12,000 pivot level to move into a short-term bearish zone.

The decline gained pace once the price broke the $ 11,800 support and settled below the 100 simple moving average (4-hours). It even spiked below the $ 11,500 support level and tested the $ 11,350 support region.

A low is formed near $ 11,347 and the price is currently attempting a fresh increase. There was a break above the $ 11,500 level. The price even climbed above the 23.6% Fib retracement level of the downward move from the $ 12,249 high to $ 11,347 low.

Bitcoin

Bitcoin price breaks $ 11,500. Source: TradingView.com

Moreover, there was a break above a connecting bearish trend line with resistance near $ 11,610 on the 4-hours chart of the BTC/USD pair. It seems like bitcoin is facing a strong resistance near $ 11,700 and $ 11,800.

The 100 simple moving average (4-hours) is also near the $ 11,800 level to act as a resistance. The main resistance is now forming near $ 11,920, $ 12,000, and the 50% Fib retracement level of the downward move from the $ 12,249 high to $ 11,347 low.

A successful break above the $ 11,800 and $ 12,000 resistance levels is must to start a fresh increase in the coming days. The next key resistance is near $ 12,250.

Major Uptrend Support for BTC

If bitcoin struggles to stay move above the $ 11,800 and $ 12,000 resistance levels, there is a risk of more losses. The first key support is near the $ 11,350 level.

The main uptrend support is near the $ 11,100 and $ 11,000 levels, below which the bears are likely to aim a larger decline in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly moving into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 50 level.

Major Support Level – $ 11,350

Major Resistance Level – $ 12,000

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Analysis – NewsBTC

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