Analysis

Bitcoin Reaches Crucial Juncture: Here’s What Could Trigger A Sharp Decline

Bitcoin price extended its rise above the $ 10,800 resistance against the US Dollar. However, BTC is struggling to clear the all-important $ 11,000 barrier and it could decline sharply.

  • Bitcoin traded above the $ 10,700 and $ 10,800 resistance levels.
  • The price is still trading well below the $ 11,000 barrier, but above the 100 hourly simple moving average.
  • There is a crucial contracting triangle forming with resistance near $ 10,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could either break the $ 11,000 barrier or decline sharply below the $ 10,650 support region.

Bitcoin Price is Approaching Crucial Resistance

There was an upside extension in bitcoin price above the $ 10,700 resistance against the US Dollar. BTC even broke the $ 10,800 resistance level and settled nicely above the 100 hourly simple moving average.

The price traded as high as $ 10,935 and it seems like the $ 11,000 barrier is already in play. Bitcoin is down more than $ 200 from the recent high and it tested the $ 10,650 support. A low is formed near $ 10,671 and the price is currently consolidating losses.

It is testing the 23.6% Fib retracement level of the recent decline from the $ 10,935 high to $ 10,671 low. It seems like there is a crucial contracting triangle forming with resistance near $ 10,800 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin price trades above $ 10,800. Source: TradingView.com

If there is an upside break above the $ 10,800 resistance, the price could break the $ 10,935 high and continue higher. On the upside, there is a major hurdle waiting for the bulls near the $ 11,000 level (as discussed in the weekly analysis). A successful close above the $ 11,000 resistance is must to start a strong increase.

Downside Break in BTC?

If bitcoin fails to clear the $ 10,800 resistance or struggles to test $ 11,000 hurdle, there is a risk of a sharp decline. An initial support on the downside is near the triangle trend line and $ 10,650.

A clear break below the $ 10,650 support zone could lead the price towards the $ 10,500 support. Any further losses may perhaps start a sustained downward move and the price could dive towards the $ 10,000 support or even $ 9,880.

Technical indicators:

Hourly MACD – The MACD is currently gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just below the 50 level.

Major Support Levels – $ 10,650, followed by $ 10,500.

Major Resistance Levels – $ 10,800, $ 10,850 and $ 11,000.

Let’s block ads! (Why?)

Analysis – NewsBTC

Leave a Reply

Your email address will not be published. Required fields are marked *