Bitcoin Price (BTC) Testing Crucial Support: Can The Bulls Stage Recovery?

  • Bitcoin price declined sharply below the $ 12,000 support area against the US Dollar.
  • The price traded close to the $ 11,000 support and it is currently consolidating losses.
  • There is a key bearish trend line forming with resistance near $ 11,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price could either recover above $ 11,400 or it might extend losses below the $ 11,000 support.

Bitcoin price reached the key $ 11,000 support area against the US Dollar. BTC is currently consolidating and seems to be preparing for the next move either above $ 11,400 or towards $ 10,800.

Bitcoin Price Analysis

Yesterday, we saw a sharp decline in bitcoin price below the $ 12,000 support against the US Dollar. The BTC/USD pair even settled below the $ 12,000 support area and the 100 hourly simple moving average. Moreover, there was a break below the $ 11,800 support and the $ 11,500 pivot level. The price traded close to the $ 11,000 support and formed a new weekly low at $ 10,958. Similarly, there were heavy losses in Ethereum, BCH and ripple.

Recently, there was an upside correction above the $ 11,200 level. Moreover, the price broke the 50% Fib retracement level of the recent decline from the $ 11,829 high to $ 10,958 low. However, the upward move was capped by the $ 11,500 resistance level. The 61.8% Fib retracement level of the recent decline from the $ 11,829 high to $ 10,958 low also acted as a resistance.

At the outset, the price is consolidating losses above the $ 11,000 support level. On the upside, there is a key bearish trend line forming with resistance near $ 11,400 on the hourly chart of the BTC/USD pair. If there is an upside break above $ 11,400 and $ 11,500, bitcoin price could recover towards the $ 11,650 and $ 11,700 levels. However, the main resistance for the bulls is near the $ 11,800 level (the previous support).

Conversely, there could be more losses if there is no break above $ 11,400 and $ 11,500. The main supports on the downside are near $ 11,000 and $ 10,800. If there is a downside break below $ 10,800, the price may accelerate decline towards the $ 10,000 level.

Bitcoin Price Analysis BTC Charr

Looking at the chart, bitcoin price seems to be preparing for the next move either above the $ 11,400 level or below the $ 11,000 support. As long as the price is trading above the key $ 10,800 support, there are chances of an upside correction above $ 11,500.

Technical indicators:

Hourly MACD – The MACD is slowly moving back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering and it could test the 45 level.

Major Support Levels – $ 11,000 followed by $ 10,800.

Major Resistance Levels – $ 11,400, $ 11,500 and $ 11,800.

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Analysis – NewsBTC

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