Bitcoin Price Analysis: BTC/USD returns to $11,500 area after modest recovery
- Bitcoin erased a small portion of weekly losses on Saturday.
- BTC/USD could continue to push lower toward $11,200.
- First stiff in near-term resistance aligns near $12,000.
Following a drop to its lowest level in more than a week at $11,370, Bitcoin (BTC/USD) reversed its direction and gained 1.25% to close at $11,670. However, the pair struggled to preserve its recovery momentum on Sunday and was last seen posting small daily losses around $11,570. Meanwhile, the pair remains on track to snap its four-week winning streak.
Bitcoin technical outlook
Bitcoin continues to trade below the 20-day SMA, which is currently located near $11,700. The Fibonacci 23.6% retracement of the late-July to mid-August uptrend is strengthening this area as resistance. Above that level, $12,000 (psychological level) could be seen as the next significant hurdle and only a daily close beyond it could help Bitcoin gather bullish momentum.
Supports, on the other hand, align at $11,370 (August 22 low), $11,200 (Fibonacci 38.2% retracement) and $10.850 (Fibonacci 50% retracement).
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.
