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Bitcoin nearing technical support level

  • BTC/USD (4-hour) stalls ahead of the 11,120.00 support level.

  • Indicators are showing bearishness is ahead. 

  • Despite general USD weakness today cryptocurrencies fail to capitalize. 
     

On the upside, there is resistance level at 11,500.00 that would need to be taken out for the bulls to take a run at the old highs. If you look slightly closer at the swings on the stochastic indicator you can see it entered the oversold territory while the price maintained its uptrend. This is called a failure swing and normally indicates upside momentum. 

There has been some hesitation surrounding price action which is due to the postponement of the SEC decision to delay the ruling to approve or reject the Van Eck ETF proposal. Looking ahead keep an eye on the key levels as they could give us an indication of the future path of the cryptocurrency.

Ahead of the US and Asia crypto sessions BTC/USD has stalled just ahead of the 11,120.00 support area. Despite the lackluster attempt to break the support zone, the Stochastic K and D lines have had a bearish crossover and fell below the 50 zone. Traditionally the K (red) and D (blue) line cross is one of the main signals for the Stochastic indicator if the red crosses over from above that would be considered a sell signal and vice versa.The MACD histogram is also below just below the mid-line and the moving averages are also still below. 

 

Author

Rajan Dhall, MSTA

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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