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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.
