- Bitcoin price hits a barrier marginally above $11,500, killing the bulls’ efforts for gains above $12,000.
- Bitcoin could plummet further to refresh levels around the strongest support at $10,954 if short term support at $11,308 caves.
Bitcoin made a persuasive move, stepping above $11,500. This price action followed an overwhelming support at $11,100. However, it became difficult to contain gains above $11,500, culminating the ongoing roll-down eyeing $11,000. BTC/USD is dancing at $11,345 at the time of writing.
According to the short term technical picture, the largest cryptocurrency is gradually falling back into the hands of the bears. The MACD highlights a stronger sellers’ grip as it dives from August high at 665. Similarly, the RSI is extending the lower high and lower low pattern from the overbought region (86) to the current level at 50 (midline). If the trend of the MACD and the RSI remains intact in the coming sessions, BTC would retest support at $11,100 and this time refresh $11,000.
It is vital to recognize that buying pressure is not entirely purged from the market but the prevailing technical condition limits the volume needed to sustain gains towards $12,000. For instance, the 50-day SMA is still widening the gap above the 200-day SMA. In other words, there is buying activity ongoing unfortunately it is not enough. For now, support at $11,300 is key to averting possible losses that could refresh the levels around $11,000.
BTC/USD daily chart
Bitcoin confluence levels
Resistance one: $11,427 – Home to a cluster of indicators including the previous low 1-hour, the SMA five 15-minutes, the Bollinger Band 15-minutes and the 200 SMA 4-hour among others.
Resistance two: $11,545 – Highlighted by the previous week low, the Bollinger Band 1-hour upper and the previous high one-day.
Support one: $11,308 – Hosts the previous day low, the Bollinger Band one-day lower curve and the pivot point one-day support one.
Support two: $10,954 – The most significant support as highlighted by the pivot point one-week support two and the Fibo 23.6% one-minute.
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