Bitcoin

Bitcoin Correction To $10k On Horizon After Bulls Lose Control At $10.9k

Bitcoin price failed to clear the $ 10,900 and $ 11,000 resistance levels against the US Dollar. BTC is currently declining and it seems like there are chances of an extended decline to $ 10,000.

  • Bitcoin failed to gain strength and it remained well below the $ 11,000 resistance.
  • The price is now trading below the $ 10,800 support and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $ 10,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains at a risk of a sharp decline if it breaks the $ 10,650 and $ 10,550 support levels.

Bitcoin Price is Retreating Lower

Yesterday, we saw a decent increase in bitcoin price above $ 10,800 and discussed the importance of the $ 11,000 resistance against the US Dollar. BTC did fail to gain strength and it remained well below the $ 11,000 resistance.

As a result, there was a bearish reaction and the price declined below the $ 10,800 support level. There was a clear break below the 50% Fib retracement level of the upward move from the $ 10,600 swing low to $ 10,945 high.

The price is now trading below the $ 10,750 level, the 100 hourly simple moving average, and the 76.4% Fib retracement level of the upward move from the $ 10,600 swing low to $ 10,945 high. It seems like the $ 10,650 level is currently acting as a support.

Bitcoin

Bitcoin price declines below $ 10,800. Source: TradingView.com

There is also a key bullish trend line forming with support near $ 10,650 on the hourly chart of the BTC/USD pair. If there is a downside break below the trend line support, the price could revisit the $ 10,550 support zone.

On the upside, the price is likely to face sellers near the $ 10,800 level. The main hurdle for the bulls is near the $ 11,000. A successful close above the $ 11,000 resistance is must for a sustained upward move in the near term.

Downsides Break in BTC?

If bitcoin fails to recover above the $ 10,800 resistance, there is a risk of a downside break. The first key support is near the $ 10,650 level.

The main support zone is forming near the $ 10,550 and $ 10,500 levels. A clear break below $ 10,500 is likely to start a sharp decline and the price could even test the $ 10,000 area.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 40 level.

Major Support Levels – $ 10,650, followed by $ 10,550.

Major Resistance Levels – $ 10,800, $ 10,950 and $ 11,000.

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