Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin price started a downside correction from the $12,500 resistance against the US Dollar. BTC is currently trading below $12,000, but there are many key supports on the downside.
- Bitcoin started a short-term downside correction and traded below the $12,000 support.
- The price is likely to find a strong support near $11,800 or $11,550.
- There is a major bullish trend line forming with support near $11,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might bounce back as long as it is above the $11,550 support level in the coming sessions.
Bitcoin Price Starts Corrective Wave
After a sharp upward move, bitcoin traded close to the $12,500 resistance against the US Dollar. BTC traded as high as $12,491 and recently started a downside correction.
There was a break below the $12,200 support level to start the recent correction. The price even broke the $12,000 support area and the 100 hourly simple moving average. However, the $11,800 level acted as a strong support.
There is also a major bullish trend line forming with support near $11,850 on the hourly chart of the BTC/USD pair. The pair is currently trading near the 23.6% Fib retracement level of the recent decline from the $12,491 high to $11,813 low.
Bitcoin price trades below $12,000. Source: TradingView.com
On the upside, the $12,000 level is a short-term resistance along with the 100 hourly SMA. The next resistance is near the $12,100 level and a connecting bearish trend line on the same chart.
The main resistance is now near the $12,150 level or the 50% Fib retracement level of the recent decline from the $12,491 high to $11,813 low. A successful push above the trend line, $12,150, and $12,200 is must to start a fresh increase in the near term. In the mentioned case, the price might revisit the $12,500 resistance.
Downsides Limited in BTC?
If bitcoin struggles to start a fresh increase above $12,100 and $12,200, it could continue to move down. The first major support is near the $11,800 level.
The next major support is near the $11,650 and $11,550 levels, below which the price bulls are likely to lose control in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $11,800, followed by $11,650.
Major Resistance Levels – $12,100, $12,150 and $12,200.
