Bitcoin Holding Strong At $11K, But 100 SMA Holds The Key To Start Fresh Rally

Aayush Jindal

1 year ago

2 mins read

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Bitcoin crashed more than $1,500 from the $12,115 high against the US Dollar. BTC is currently consolidating above $11,000 and it must surpass the 100 hourly SMA for a fresh rally.

Bitcoin is holding a couple of important supports near the $11,000 and $10,850 levels.
The price seems to be facing a strong resistance near the 100 hourly SMA and $11,450.
There is a key contracting triangle forming with resistance near $11,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must clear the 100 hourly SMA and $11,450 to start a fresh rally.

Bitcoin Price is Consolidating Losses

There was a strong increase in bitcoin price above the $11,000 and $11,500 levels against the US Dollar. BTC even broke the $12,000 level and traded to a new multi-month high above $12,100.

A high was formed near $12,115 high before the price crashed more than $1,500. It broke many key supports near $11,500 and $11,000. There was a spike below the $10,850 support, but the price stayed above the main $10,500 support zone.

A low is formed near $10,591 and the price is currently correcting higher. There was a break above the $11,000 resistance, plus the 23.6% Fib retracement level of the recent decline from the $12,115 high to $10,591 low.

However, the price seems to be struggling to clear the $11,200 and $11,250 resistance levels. The 100 hourly simple moving average is positioned near the $11,300 level to prevent an upside break. There is also a key contracting triangle forming with resistance near $11,200 on the hourly chart of the BTC/USD pair.

Bitcoin price trades above $11,000. Source: TradingView.com

The pair must clear the triangle resistance and the 100 hourly SMA to start a fresh increase. The next major resistance is near the $11,450 and $11,500 levels. It is close to the 50% Fib retracement level of the recent decline from the $12,115 high to $10,591 low.

A successful close above the $11,500 level will most likely push the price back into a bullish zone. In the mentioned case, the price is likely to climb back towards the $12,000 resistance.

Fresh Decline in BTC?

The triangle support is near the $11,000 level, below which bitcoin price might retest the $10,850 support level in the near term.

The main support is near the $10,600 and $10,500 levels, below which the bears are likely to aim a larger decline (may be towards $10,000).

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising towards the 50 level.

Major Support Levels – $11,000, followed by $10,850.

Major Resistance Levels – $11,200, $11,300 and $11,450.

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.

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