Bitcoin

Bitcoin Trading Near Inflection Point: Here’s Why $11,650 Holds The Key

Bitcoin price started an upside correction from the $ 11,350 support against the US Dollar. BTC is currently declining, but it could bounce back as long as it is above $ 11,650 or $ 11,550.

  • Bitcoin formed a high near $ 11,825 and it is currently correcting lower.
  • The price is testing a key support near $ 11,650 and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $ 11,710 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must stay above the $ 11,650 and $ 11,550 support levels to climb higher towards $ 12,000.

Bitcoin Price Testing Crucial Support

Yesterday, we saw a decent upside correction in bitcoin price above the $ 11,650 resistance against the US Dollar. BTC even surpassed the $ 11,700 level and settled above the 100 hourly simple moving average.

The price struggled to gain momentum above the $ 11,800 level and a high is formed near $ 11,825. Bitcoin is currently correcting lower and trading below $ 11,750. There was a break below the 23.6% Fib retracement level of the recent recovery wave from the $ 11,349 low to $ 11,825 high.

Moreover, there was a break below a major bullish trend line with support near $ 11,710 on the hourly chart of the BTC/USD pair. The pair is now testing a key support near $ 11,650 and the 100 hourly simple moving average.

Bitcoin Price

Bitcoin price trades below $ 11,800. Source: TradingView.com

The previous resistance near $ 11,650 is likely to act as a strong support. The next major support is near the $ 11,550 level. It is also close to the 50% Fib retracement level of the recent recovery wave from the $ 11,349 low to $ 11,825 high.

Any further losses could push the price back into a bearish zone below $ 11,550. In the mentioned case, it could revisit the $ 11,350 support in the near term.

Fresh Increase in BTC?

If bitcoin stays above the $ 11,650 support and the 100 hourly SMA, it could bounce back and climb higher. An initial resistance on the upside is near $ 11,800.

The first major resistance is near the $ 11,850 level, above which the bulls are likely to aim a test of the $ 12,000 barrier in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level, with a bearish angle.

Major Support Levels – $ 11,650, followed by $ 11,550.

Major Resistance Levels – $ 11,850, $ 12,000 and $ 12,200.

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