TA: Bitcoin Could Start A Major Correction If it Closes Below $11,200

Aayush Jindal

Last Updated: June 11, 2024 2:07 pm

2 mins read

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Bitcoin price is still struggling to gain bullish momentum above $11,500 against the US Dollar. BTC could start a major downside correction if it breaks $11,200 and the 100 hourly SMA.

Bitcoin is struggling to settle above the $11,500 and $11,520 resistance levels.
The price is currently trading just above the $10,400 support and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $11,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a strong downside correction if it breaks the 100 hourly SMA and then $11,200.

Bitcoin Price Lacks Bullish Momentum

After trading to a new monthly high at $11.724, bitcoin price started a downside correction against the US Dollar. BTC broke the $11,520 and $11,500 support levels to move into a short-term bearish zone.

The price tested the $11,300 zone and remained well bid above the 100 hourly simple moving average. A low is formed near $11,315 and the price is currently rising. It surpassed the 23.6% Fib retracement level of the recent decline from the $11,724 high to $11,315 low.

However, the bulls are still struggling to gain strength above the $11,500 and $11,520 resistance levels. The 50% Fib retracement level of the recent decline from the $11,724 high to $11,315 low is also near the $11,520 level.

Source: BTCUSD on TradingView.com

On the downside, the 100 hourly SMA holds the key at $11,400. There is also a key bullish trend line forming with support near $11,400 on the hourly chart of the BTC/USD pair.

If there is a downside break below the trend line support and the 100 hourly SMA, bitcoin price may even slide below the $11,315 support. The next major support is near the $11,200 level, below which there is a risk of a larger downside correction in the near term.

Fresh Rally in BTC?

If bitcoin stays above the $11,200 support level, there are chances of a fresh rally. The first major barrier is near the $11,500 and $11,520 levels.

A successful close above the $11,520 level could open the doors for a move towards the $11,724 high. Any further gains are likely to lead the price towards the $12,000 barrier in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is currently lacking momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level, with a bearish angle.

Major Support Levels – $11,400, followed by $11,200.

Major Resistance Levels – $11,500, $11,520 and $11,700.

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.

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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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