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Bitcoin price analysis: BTC/USD retreats from recent high, vulnerable to further correction

  • BTC/USD bulls are discouraged by the second failed attempt at $11,000.
  • The sell-off may continue towards $10,000.
Bitcoin price analysis: BTC/USD retreats from recent high, vulnerable to further correction
Tanya AbrosimovaTanya AbrosimovaIndependent Analyst

Bitcoin (BTC) has been treating from the recent highs amid technical correction. The price has moved away from overbought territory and settled at $10,600 by the time of writing. The first digital coin with the current market capitalization of $189.6 billion is changing hands at $10,650, mostly unchanged in recent 24 hours and down nearly 2% since the beginning of the Asian trading on Monday.
 
'Bitcoin's price has recovered over 190% of its value year to date, with most of the gain coming in the past three months.

Bitcoin's technical picture

Looking technically, Bitcoin (BTC) has been sliding down after the second attempt to break above $11,000. Obviously, the bulls are not ready to take out this handle as of yet. However, once it is out of the way, the recovery may be extended towards $11,500 and $11,764 (February 2018 recovery high). 

Considering the downward-looking RSI (The Relative Strength Index) both on a weekly and daily timeframes, the further correction may gain traction with the nearest support spotted on approach to $10,340. This barrier is created by the upper line of the 1-day Bollinger Band at $10,340. Once it is broken, the sell-off may gain traction and take the price towards  critical$10,000.

BTC/USD, 1-hour chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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