Technicals Suggest Bitcoin Could Dive Further Below $11,000

Bitcoin price failed to hold gains above the $11,550 support zone against the US Dollar. BTC is currently declining and it seems like the bears are aiming a downside break below $11,000.

• Bitcoin is now trading well below the $11,650 and $11,550 support levels.
• The price revisited the $11,100 level and settled well below the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $11,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must break the $11,400 and $11,500 resistance levels to move into a positive zone.

Bitcoin Price Gains Bearish Momentum

Bitcoin price struggled to continue higher above the $11,800 and $12,000 levels against the US Dollar. As a result, BTC declined sharply and broke the $11,650 support zone.

The gained pace below the $11,550 support level and the 100 hourly simple moving average. It even broke the $11,200 support and traded to a new weekly low at $11,122. It is currently correcting higher and trading above the $11,250 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $11,789 high to $11,122 low. However, the price is now facing hurdles near the $11,400 level.

Bitcoin price trades below $11,500. Source: 

There is also a key bearish trend line forming with resistance near $11,400 on the hourly chart of the BTC/USD pair. Above the trend line, the price is likely to face a strong resistance near the $11,500 and $11,550 levels.

An intermediate hurdle could be near the 50% Fib retracement level of the recent decline from the $11,789 high to $11,122 low. An upside break above the trend line resistance and then $11,550 is must for the bulls to regain control in the near term.

More Losses in BTC?

If bitcoin fails to recover above the $11,400 and $11,550 levels, there is a risk of more losses. The first key support is near the $11,100 level. The main support is now forming near the $11,000 handle, below which there is a risk of a sharp decline. In the stated case, the price might continue to move down towards the $10,500 level. Technical indicators: Hourly MACD – The MACD is gaining momentum in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 50 level, with bearish signs. Major Support Levels – $11,100, followed by $11,000. Major Resistance Levels – $11,400, $11,500 and $11,550.