Bitcoin is Plunging, But It’s Too Early to Say Bulls Have Given Up

Aayush Jindal

Last Updated: June 11, 2024 2:15 pm

2 mins read

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Bitcoin price started a sharp decline from the $12,000 resistance against the US Dollar. BTC must stay above $11,200 and $11,000 to remain in a positive zone.

Bitcoin failed to gain pace above the $12,000 resistance level, and started a sharp decline.
The price is down over 5%, and it broke the $11,500 support and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $11,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is currently consolidating losses near $11,350 and it might revisit the $11,200 support zone.

Bitcoin Price Dives Below $11,500

Yesterday, we saw a crucial rejection above $12,000 for bitcoin price against the US Dollar. BTC topped near the $12,065 level and started a sharp decline. The bears were able to clear the $11,650 and $11,500 support levels to spark a major decline.

The price even broke the $11,350 zone and settled below the 100 hourly simple moving average. There was also a break below a major bullish trend line with support near $11,640 on the hourly chart of the BTC/USD pair.

The pair tested the $11,200 support and a low is formed near $11,186. Recently, there was a recovery wave from the $11,186 low. Bitcoin price recovered above the $11,350 level. It even climbed above the 23.6% Fib retracement level of the recent decline from the $12,064 high to $11,186 low.

Bitcoin price trades below $11,500. Source: TradingView.com

The bulls are currently struggling to push the price above the $11,450 and $11,500 levels (support turned resistance). The next major resistance is near the $11,650 level and the 100 hourly simple moving average.

The 50% Fib retracement level of the recent decline from the $12,064 high to $11,186 low is also near the $11,625 level. A successful break above the $11,500 level and then a follow through move above $11,650 is must for a fresh upward move in the near term.

Key Uptrend Support for BTC

If bitcoin price struggles to clear the $11,500 resistance, it might continue to move down. The first key support for the bulls is near the $11,200 level.

The next major support is near the $11,000 zone, below which the bears are likely to aim a larger decline (may be towards the $10,500 level).

Technical indicators:

Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and it is below the 40 level.

Major Support Levels – $11,200, followed by $11,000.

Major Resistance Levels – $11,500, $11,550 and $11,650.

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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