Bitcoin price started a sharp decline from the $ 12,000 resistance against the US Dollar. BTC must stay above $ 11,200 and $ 11,000 to remain in a positive zone.
- Bitcoin failed to gain pace above the $ 12,000 resistance level, and started a sharp decline.
- The price is down over 5%, and it broke the $ 11,500 support and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $ 11,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently consolidating losses near $ 11,350 and it might revisit the $ 11,200 support zone.
Bitcoin Price Dives Below $ 11,500
Yesterday, we saw a crucial rejection above $ 12,000 for bitcoin price against the US Dollar. BTC topped near the $ 12,065 level and started a sharp decline. The bears were able to clear the $ 11,650 and $ 11,500 support levels to spark a major decline.
The price even broke the $ 11,350 zone and settled below the 100 hourly simple moving average. There was also a break below a major bullish trend line with support near $ 11,640 on the hourly chart of the BTC/USD pair.
The pair tested the $ 11,200 support and a low is formed near $ 11,186. Recently, there was a recovery wave from the $ 11,186 low. Bitcoin price recovered above the $ 11,350 level. It even climbed above the 23.6% Fib retracement level of the recent decline from the $ 12,064 high to $ 11,186 low.
Bitcoin price trades below $ 11,500. Source: TradingView.com
The bulls are currently struggling to push the price above the $ 11,450 and $ 11,500 levels (support turned resistance). The next major resistance is near the $ 11,650 level and the 100 hourly simple moving average.
The 50% Fib retracement level of the recent decline from the $ 12,064 high to $ 11,186 low is also near the $ 11,625 level. A successful break above the $ 11,500 level and then a follow through move above $ 11,650 is must for a fresh upward move in the near term.
Key Uptrend Support for BTC
If bitcoin price struggles to clear the $ 11,500 resistance, it might continue to move down. The first key support for the bulls is near the $ 11,200 level.
The next major support is near the $ 11,000 zone, below which the bears are likely to aim a larger decline (may be towards the $ 10,500 level).
Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and it is below the 40 level.
Major Support Levels – $ 11,200, followed by $ 11,000.
Major Resistance Levels – $ 11,500, $ 11,550 and $ 11,650.