Bitcoin Price (BTC) Remains Vulnerable, Risk of More Losses

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price tested the $11,000 support level and recently recovered higher against the US Dollar.
The price recovered close to the $11,900, but upsides remain capped below $12,000.
There is an ascending channel forming with support near $11,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price could start a strong decline if there is break below $11,500 and $11,400 in the near term.

Bitcoin price is facing an uphill task with many hurdles near $12,000 against the US Dollar. BTC remains vulnerable as long as there is no close above the $12,000 pivot level.

Bitcoin Price Analysis

Recently, we saw a major decline in bitcoin price below the $11,500 level against the US Dollar. The BTC/USD pair even traded towards the $11,000 support level and settled below the 100 hourly simple moving average. A swing low was formed near the $10,990 level and recently there was an upside correction. There was a break above the $11,500 level and the 23.6% Fib retracement level of the major drop from the $13,195 high to $10,990 low.

Moreover, the price even broke the $11,800 level and traded close to the $11,900 level. However, the upside remained capped below the $12,000 level. The price even failed to test the 50% Fib retracement level of the major drop from the $13,195 high to $10,990 low. Besides, the price remained below the 100 hourly SMA and $12,000. It is currently trading lower below the $11,800 level.

There is an ascending channel forming with support near $11,550 on the hourly chart of the BTC/USD pair. The pair is currently trading near the channel support, below which the price is likely to test $11,500. If there are more losses, the price may even break the $11,400 level and extend losses. The main support is near the $11,000 level, below which the last line of defense is near the $10,880 level.

On the upside, there are many hurdles near the $11,800 and $12,000 levels. To start a fresh increase, the price must close above the $12,000 resistance and the 100 hourly SMA. The next resistance could be near $12,250 and the 61.8% Fib retracement level of the major drop from the $13,195 high to $10,990 low.

Looking at the chart, bitcoin price is correcting struggling to continue higher above $11,800 and $11,900. Therefore, there is a risk of a downside break below the $11,500 and $11,400 levels in the near term.

Technical indicators:

Hourly MACD – The MACD is moving back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and is below 50 level.

Major Support Levels – $11,500 followed by $11,400.

Major Resistance Levels – $11,800, $12,000 and $12,250.

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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