Bitcoin price is still struggling to gain bullish momentum above $11,500 against the US Dollar. BTC could start a major downside correction if it breaks $11,200 and the 100 hourly SMA.
- Bitcoin is struggling to settle above the $11,500 and $11,520 resistance levels.
- The price is currently trading just above the $10,400 support and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $11,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong downside correction if it breaks the 100 hourly SMA and then $11,200.
Bitcoin Price Lacks Bullish Momentum
After trading to a new monthly high at $11.724, bitcoin price started a downside correction against the US Dollar. BTC broke the $11,520 and $11,500 support levels to move into a short-term bearish zone.
The price tested the $11,300 zone and remained well bid above the 100 hourly simple moving average. A low is formed near $11,315 and the price is currently rising. It surpassed the 23.6% Fib retracement level of the recent decline from the $11,724 high to $11,315 low.
However, the bulls are still struggling to gain strength above the $11,500 and $11,520 resistance levels. The 50% Fib retracement level of the recent decline from the $11,724 high to $11,315 low is also near the $11,520 level.
Source:
On the downside, the 100 hourly SMA holds the key at $11,400. There is also a key bullish trend line forming with support near $11,400 on the hourly chart of the BTC/USD pair.
If there is a downside break below the trend line support and the 100 hourly SMA, bitcoin price may even slide below the $11,315 support. The next major support is near the $11,200 level, below which there is a risk of a larger downside correction in the near term.
Fresh Rally in BTC?
If bitcoin stays above the $11,200 support level, there are chances of a fresh rally. The first major barrier is near the $11,500 and $11,520 levels.
A successful close above the $11,520 level could open the doors for a move towards the $11,724 high. Any further gains are likely to lead the price towards the $12,000 barrier in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is currently lacking momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level, with a bearish angle.
Major Support Levels – $11,400, followed by $11,200.
Major Resistance Levels – $11,500, $11,520 and $11,700.