Bitcoin Topside Bias Vulnerable If it Closes Below One Crucial Level

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price retested the $10,750 support and recently corrected higher against the US Dollar. BTC must stay above $10,750 to start a fresh increase in the near term.

Bitcoin is struggling to gains momentum above the $11,000 and $11,000 resistance levels.
The price is currently trading well above the $10,750 support and testing the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $10,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could nosedive if the bulls fail to protect the $10,750 support zone in the near term.

Bitcoin Price Holding Key Support

After trading close to the $11,200 level, bitcoin price started a downside correction against the US Dollar. BTC corrected below the $11,000 level and the 100 hourly simple moving average.

However, the bulls were able to protect the main $10,750 support zone. A low is formed near the $10,767 level and the price is currently rising. It broke the $10,850 and $10,880 levels to move back into a short-term positive zone.

There was also a break above a key bearish trend line with resistance near $10,880 on the hourly chart of the BTC/USD pair. Bitcoin tested the 50% Fib retracement level of the recent decline from the $11,180 high to $10,767 low.

Bitcoin price approaching $11,000. Source: TradingView.com

The price is currently trading well above the $10,750 support and testing the 100 hourly simple moving average. On the upside, the first major resistance is near the $11,000 level.

The next key resistance is near the $11,020 level or the 61.8% Fib retracement level of the recent decline from the $11,180 high to $10,767 low. If there is a clear break above the $11,000 and $11,020 levels, the price is likely to continue higher.

The next key hurdle for the bulls could be near the $11,200 level. Any further gains may perhaps open the doors for a larger upward move towards the $11,500 level in the near term.

Risk of Bearish Break in BTC?

If bitcoin fails to settle above the $11,000 pivot level, there is a risk of another decline. The main support on the downside is near the $10,750 zone, where the bulls took a stand on many occasions.

A clear break below the $10,800 and $10,750 support levels could spark a sharp decline. The next major support where the bulls might appear is near the $10,550 level.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and approaching the 50 level.

Major Support Levels – $10,850, followed by $10,750.

Major Resistance Levels – $11,000, $11,020 and $11,200.

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.
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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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