Bitcoin price analysis: BTC/USD failed at $11,000 on speculative profit-taking

Bitcoin price tested the critical resistance zone at $11,000 only to meet fresh selling interest there. It looks like the speculators are eager to take profits ahead of major technical levels, which undermines the upside potential of the cryptocurrency without further positive fundamental developments.

All major cryptocurrencies have shifted to the red zone on Wednesday after initial recovery attempt. The move has mostly technical nature, though alarming news from China might have added to the market pessimism. 

The hostile regulatory approach towards digital assets is becoming global, as authorities seek to curb illegal activities carried out using cryptocurrencies. While this is a welcoming development that will help the industry to mature in the long-run, short-term market reactions are mostly negative.

Bitcoin price technical picture

BTC/USD touched the intraday high at $11,047 and retreated towards $10,500 area, losing all morning gains.  The coin is moving within a clear downside channel, visible on the daily chart. The bulls need to take it above $11,000, to negate the long-term bearish view.  The support is still at $10.266 (50% Fibo) and $10,000.  The move below will put $9.305 (February 25 low) into focus.

BTC/USD, daily chart