Technicals Suggest Bitcoin Could Correct To $10,700 Before Fresh Increase

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is struggling to gain momentum above the $11,200 level against the US Dollar. BTC is currently correcting lower and it could test $10,700 before a fresh increase.

Bitcoin is showing signs of a downside correction below the $11,200 level.
The price is likely to find a strong buying interest near the $10,700 level.
There was a break below a crucial bullish trend line with support near $10,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase as long as it is above $10,700 and $10,300 in the near term.

Bitcoin Price Correcting Gains

After a downside correction from $11,400, bitcoin found support near the $10,700 level against the US Dollar. BTC remained well bid above the $10,700 level and the 100 hourly simple moving average.

It climbed back above $11,000, but it struggled to gain strength above the $11,200 level. A high is formed near $11,195 and the price is currently correcting lower. It traded below the $11,100 and $11,000 levels.

There was a break below a crucial bullish trend line with support near $10,900 on the hourly chart of the BTC/USD pair. The pair is now testing the 50% Fib retracement level of the recent upward move from $10,599 swing low to $11,195 high.

Bitcoin price above $10,000. Source: TradingView.com

The next major support is near the $10,820 level. It is close to the 61.8% Fib retracement level of the recent upward move from $10,599 swing low to $11,195 high. The main support is near the $10,700 level.

A successful close below the $10,700 level may perhaps start an extended decline. In the mentioned case, the price is likely to test the $10,300 support zone.

Fresh Increase in BTC?

Once the current correction wave is complete, bitcoin price is likely to resume its upward move above $11,000. The first major resistance is near the $11,200 level.

A successful close above the $11,200 level is needed to start a fresh increase. The next major resistance on the upside is near the $11,400 and $11,500 levels. Any further gains could open the doors for a push towards the main $12,000 resistance in the near term.

Technical indicators:

Hourly MACD – The MACD is currently gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now correcting lower towards the 50 level.

Major Support Levels – $10,700, followed by $10,300.

Major Resistance Levels – $11,200, $11,400 and $11,500.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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