TA: Bitcoin Topside Bias Vulnerable If It Continues To Struggle Below $11.5K

Aayush Jindal

Last Updated: June 11, 2024 2:07 pm

2 mins read

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Bitcoin price is consolidating in a range below the $11,500 resistance against the US Dollar. BTC could start a substantial decline if it breaks the $11,230 support zone.

Bitcoin is struggling to gain traction above the $11,500 and $11,520 resistance levels.
The price is currently trading below $10,400 support and the 100 hourly simple moving average.
There is a short-term contracting triangle forming with resistance near $11,480 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 $11,230 and $11,200 support levels.

Bitcoin Price Consolidating Gains

In the past three sessions, there were mostly range moves in bitcoin price below the $11,560 and $11,500 resistance levels. It seems like BTC made two attempts to surpass the $11,560 level, but it failed to gain bullish momentum.

The last swing high was near $11,560 before the price declined below $11,400. It traded as low as $11,302 and it is currently correcting higher. There was a break above the $11,350 level, plus the 23.6% Fib retracement level of the recent decline from the $11,560 high to $11,302 low.

However, bitcoin is still trading below $10,400 support and the 100 hourly simple moving average. An immediate resistance is near the $11,430 level since it is close to the 50% Fib retracement level of the recent decline from the $11,560 high to $11,302 low.

Source: BTCUSD on TradingView.com

There is also a short-term contracting triangle forming with resistance near $11,480 on the hourly chart of the BTC/USD pair. To start a strong increase, bitcoin price needs to gain momentum above the $11,500 and $11,560 resistance levels. The next stop could be near $11,700, above which there are chances of a push towards the $12,000 level.

Downside Break in BTC?

If bitcoin fails to surpass the $11,500 and $11,560 resistance levels, there is a risk of a bearish break. The triangle support is near the $11,320 level.

The main support is near the $11,230 and $11,200 levels, below which the bears are likely to aim a larger downside correction. The next immediate support could be $11,000, below which the price might slide towards $10,500.

Technical indicators:

Hourly MACD – The MACD is about to move into the bearish zone.

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

Major Support Levels – $11,320, followed by $11,230.

Major Resistance Levels – $11,480, $11,500 and $11,560.

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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