Bitcoin Could Avoid a Major Reversal if it Stays Above One Key Support

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin is declining and trading well below the $12,000 pivot level against the US Dollar. BTC must stay above the $11,100 support zone to start a fresh increase in the near term.

Bitcoin is struggling to recover and it is trading well below $12,000 and $11,800.
The price is currently holding a couple of strong supports above $11,350 and $11,100.
There was a break above a connecting bearish trend line with resistance near $11,610 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair is struggling to recover above $11,700 and it is trading well below the 100 simple moving average (4-hours).

Bitcoin is Facing Hurdles

This past week, bitcoin, Ethereum and ripple started a major downside correction against the US Dollar. BTC settled below the key $12,000 pivot level to move into a short-term bearish zone.

The decline gained pace once the price broke the $11,800 support and settled below the 100 simple moving average (4-hours). It even spiked below the $11,500 support level and tested the $11,350 support region.

A low is formed near $11,347 and the price is currently attempting a fresh increase. There was a break above the $11,500 level. The price even climbed above the 23.6% Fib retracement level of the downward move from the $12,249 high to $11,347 low.

Bitcoin price breaks $11,500. Source: TradingView.com

Moreover, there was a break above a connecting bearish trend line with resistance near $11,610 on the 4-hours chart of the BTC/USD pair. It seems like bitcoin is facing a strong resistance near $11,700 and $11,800.

The 100 simple moving average (4-hours) is also near the $11,800 level to act as a resistance. The main resistance is now forming near $11,920, $12,000, and the 50% Fib retracement level of the downward move from the $12,249 high to $11,347 low.

A successful break above the $11,800 and $12,000 resistance levels is must to start a fresh increase in the coming days. The next key resistance is near $12,250.

Major Uptrend Support for BTC

If bitcoin struggles to stay move above the $11,800 and $12,000 resistance levels, there is a risk of more losses. The first key support is near the $11,350 level.

The main uptrend support is near the $11,100 and $11,000 levels, below which the bears are likely to aim a larger decline in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly moving into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 50 level.

Major Support Level – $11,350

Major Resistance Level – $12,000

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.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

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.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.