Bitcoin

Bitcoin is Plunging, But It’s Too Early to Say Bulls Have Given Up

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

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).

Technical indicators:

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.

Let’s block ads! (Why?)

Bitcoin – NewsBTC

Leave a Reply

Your email address will not be published.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

eleven − 5 =