Bitcoin Price (BTC) Could Retest Key Support Before Fresh Increase
- Bitcoin price climbed higher recently above the $11,000 resistance level against the US Dollar.
- The price spiked towards $11,200 and recently corrected lower below $10,800.
- There is a connecting bullish trend line forming with support near $10,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could retest the key $10,000 support level before it could rise again towards $11,000.
Bitcoin price is struggling to continue higher above $10,800 support against the US Dollar. Therefore, BTC price might decline towards $10,000 before it could start a fresh increase.
Bitcoin Price Analysis
After a successful close above the $10,000 pivot level, bitcoin price extended gains against the US Dollar. The BTC/USD pair broke the $10,500 and $10,800 resistance levels. Moreover, the pair settled above the $10,500 level and the 100 hourly simple moving average. Finally, the price broke the $11,000 resistance level. Finally, a new swing high was formed near $11,200 and recently the price started a downside correction.
The price traded below the $10,800 support level to start the correction. It even broke the $10,500 support level and spiked towards the $10,000 level. A swing low was formed near $10,018 and the price found support near the 100 hourly simple moving average. Bitcoin price started a decent rise and broke the $10,400 level. Moreover, there was a break above the 23.6% Fib retracement level of the recent slide from the $11,200 high to $10,018 low.
However, the upward move is facing hurdles near the $10,700 level. More importantly, the 50% Fib retracement level of the recent slide from the $11,200 high to $10,018 low is capping the upward move. At the moment, the price is struggling to gain momentum above the $10,700 and $10,800 levels.
Therefore, if there is an upside break above $10,800, there are chances of more gains above $11,000. On the downside, there are many supports near the $10,500 level. Moreover, there is a connecting bullish trend line forming with support near $10,450 on the hourly chart of the BTC/USD pair. If there is a downside break below the trend line and the 100 hourly SMA, there could be more downsides towards $10,000 in the coming sessions.
Looking at the chart, bitcoin price is clearly struggling to gain traction above $10,800. Therefore, if the bulls continue to struggle, there are chances of a downside thrust towards the $10,000 support level before BTC climbs higher again towards $11,200.
Technical indicators:
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower and is below the 50 level.
Major Support Levels – $10,400 followed by $10,000.
Major Resistance Levels – $10,800, $11,000 and $11,200.
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Aayush Jindal, Khareem Sudlow
