Bitcoin price retested the $ 10,750 support and recently corrected higher against the US Dollar. BTC must stay above $ 10,750 to start a fresh increase in the near term.
- Bitcoin is struggling to gains momentum above the $ 11,000 and $ 11,000 resistance levels.
- The price is currently trading well above the $ 10,750 support and testing the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $ 10,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could nosedive if the bulls fail to protect the $ 10,750 support zone in the near term.
Bitcoin Price Holding Key Support
After trading close to the $ 11,200 level, bitcoin price started a downside correction against the US Dollar. BTC corrected below the $ 11,000 level and the 100 hourly simple moving average.
However, the bulls were able to protect the main $ 10,750 support zone. A low is formed near the $ 10,767 level and the price is currently rising. It broke the $ 10,850 and $ 10,880 levels to move back into a short-term positive zone.
There was also a break above a key bearish trend line with resistance near $ 10,880 on the hourly chart of the BTC/USD pair. Bitcoin tested the 50% Fib retracement level of the recent decline from the $ 11,180 high to $ 10,767 low.
Bitcoin price approaching $ 11,000. Source: TradingView.com
The price is currently trading well above the $ 10,750 support and testing the 100 hourly simple moving average. On the upside, the first major resistance is near the $ 11,000 level.
The next key resistance is near the $ 11,020 level or the 61.8% Fib retracement level of the recent decline from the $ 11,180 high to $ 10,767 low. If there is a clear break above the $ 11,000 and $ 11,020 levels, the price is likely to continue higher.
The next key hurdle for the bulls could be near the $ 11,200 level. Any further gains may perhaps open the doors for a larger upward move towards the $ 11,500 level in the near term.
Risk of Bearish Break in BTC?
If bitcoin fails to settle above the $ 11,000 pivot level, there is a risk of another decline. The main support on the downside is near the $ 10,750 zone, where the bulls took a stand on many occasions.
A clear break below the $ 10,800 and $ 10,750 support levels could spark a sharp decline. The next major support where the bulls might appear is near the $ 10,550 level.
Hourly MACD – The MACD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and approaching the 50 level.
Major Support Levels – $ 10,850, followed by $ 10,750.
Major Resistance Levels – $ 11,000, $ 11,020 and $ 11,200.