Bitcoin is Plunging, But It’s Too Early to Say Bulls Have Given Up

Bitcoin price started a sharp decline from the $12,000 resistance against the US Dollar. BTC must stay above $11,200 and $11,000 to remain in a positive zone.

• Bitcoin failed to gain pace above the $12,000 resistance level, and started a sharp decline.
• The price is down over 5%, and it broke the $11,500 support and the 100 hourly simple moving average.
• There was a break below a major bullish trend line with support near $11,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is currently consolidating losses near $11,350 and it might revisit the $11,200 support zone.

Bitcoin Price Dives Below $11,500

Yesterday, we saw a crucial rejection above $12,000 for bitcoin price against the US Dollar. BTC topped near the $12,065 level and started a sharp decline. The bears were able to clear the $11,650 and $11,500 support levels to spark a major decline.

The price even broke the $11,350 zone and settled below the 100 hourly simple moving average. There was also a break below a major bullish trend line with support near $11,640 on the hourly chart of the BTC/USD pair.

The pair tested the $11,200 support and a low is formed near $11,186. Recently, there was a recovery wave from the $11,186 low. Bitcoin price recovered above the $11,350 level. It even climbed above the 23.6% Fib retracement level of the recent decline from the $12,064 high to $11,186 low.

Bitcoin price trades below $11,500. Source: 

The bulls are currently struggling to push the price above the $11,450 and $11,500 levels (support turned resistance). The next major resistance is near the $11,650 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $12,064 high to $11,186 low is also near the $11,625 level. A successful break above the $11,500 level and then a follow through move above $11,650 is must for a fresh upward move in the near term.

Key Uptrend Support for BTC

If bitcoin price struggles to clear the $11,500 resistance, it might continue to move down. The first key support for the bulls is near the $11,200 level. The next major support is near the $11,000 zone, below which the bears are likely to aim a larger decline (may be towards the $10,500 level). Technical indicators: Hourly MACD – The MACD is struggling to gain momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and it is below the 40 level. Major Support Levels – $11,200, followed by $11,000. Major Resistance Levels – $11,500, $11,550 and $11,650.