Bitcoin (BTC) Price Weekly Forecast: Risk Of Fresh Drop To $10,500
- After a decent rise, bitcoin price topped near the $12,325 level against the US Dollar.
- The price is currently correcting lower below $11,500, with a bearish angle.
- There was a break below a crucial contracting triangle with support near $11,750 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently holding the $11,200 support, but it could extend its decline to $10,500.
Bitcoin price is currently correcting gains from $12,325 against the US Dollar. BTC price could correct lower towards $10,500 before it could rise again in the near term.
Bitcoin Price Weekly Analysis (BTC)
In the past few days, there was a decent rise in bitcoin price above the $11,000 resistance against the US Dollar. The BTC/USD pair traded above the $11,500 and $11,800 resistance levels. Moreover, there was a break above $12,000 and the price settled well above the 100 simple moving average (4-hours). A swing high was formed near $12,325 before the price started a downside correction.
There was a consolidation pattern formed below $12,000 before the price started a downside correction. Moreover, there was a break below a crucial contracting triangle with support near $11,750 on the 4-hours chart of the BTC/USD pair. The pair declined below the $11,500 support plus the 23.6% Fib retracement level of the last upward move from the $9,147 low to $12,325 high.
It opened the doors for more losses and the price declined below the $11,400 level. Bitcoin price is now trading above the $11,200 support level and is consolidating losses. If there are more downsides, the price could test the $11,000 or $10,900 support level. The next key support is near the $10,740 level. It represents the 50% Fib retracement level of the last upward move from the $9,147 low to $12,325 high.
However, the main support is near the $10,500 level and the 100 simple moving average (4-hours). The final stop for the bears could be the $10,350 level. It coincides with the 61.8% Fib retracement level of the last upward move from the $9,147 low to $12,325 high. On the upside, an immediate resistance is near the $11,500 level.
Looking at the chart, bitcoin price is clearly correcting gains from the $12,325 high. It might continue to slide towards the $10,500 or $10,400 support. On the other hand, a successful break above $11,500 and a follow through above $11,800 is needed for more gains in the near term.
Technical indicators
4 hours MACD – The MACD for BTC/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently holding the 40 level.
Major Support Level – $11,000
Major Resistance Level – $11,800
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Aayush Jindal, Khareem Sudlow
