Bitcoin finds support near $11,000, waits for next catalyst
- Bitcoin remains on track to post weekly gains in USD terms.
- Daily chart shows that BTC/USD stays in consolidation following June rally.
After losing nearly 7% on Thursday, Bitcoin extended its slide on Friday and erased more than 1% on a daily basis but found support near the critical $11,000 mark. With the trading action staying relatively subdued on Saturday, the BTC/USD pair is adding a little more than 3% at $11,400.
Following the impressive rally that carried the pair to its highest level since January 2018 near $14,000, the pair staged a deep technical correction. However, the price action witnessed in the last couple of weeks and the symmetrical triangle pattern on the daily chart confirms that the pair is struggling to determine its next short-term direction.
A break out of the range between the 38.2% and the 50% Fibonacci retracement of the June rally, which are located at $11,500 and $10,750 respectively, could give the next directional signal to investors. Outside of that channel, $10,000 remains as a critical support and a fresh leg up is most likely to start above the $14,000 area.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
