Bitcoin plunged from the $ 12,115 high against the US dollar by more than $ 1,500. BTC is currently consolidating over $ 11,000 and must surpass the 100-hour SMA for a new rally.
- Bitcoin holds some key supports near the $ 11,000 and $ 10,850 levels.
- The price appears to be facing strong resistance near the 100-hour SMA and $ 11,450.
- A central contraction triangle forms on the hourly chart of the BTC / USD pair (Kraken data feed) with resistance close to USD 11,200.
- The couple must complete the 100-hour SMA and $ 11,450 to start a new rally.
The Bitcoin price consolidates losses
Bitcoin prices rose sharply above the $ 11,000 and $ 11,500 levels against the US dollar. BTC even broke the $ 12,000 level and hit a new multi-month high above $ 12,100.
A high was formed near $ 12,115 before the price tumbled more than $ 1,500. It has broken many major supports near $ 11,500 and $ 11,000. There was an increase below the $ 10,850 support but the price remained above the main support area of $ 10,500.
A low is being formed near $ 10,591 and the price is currently correcting higher. There was a break above the $ 11,000 resistance plus the fib retracement level of 23.6% of the recent drop from the $ 12,115 high to the $ 10,591 low.
However, the price appears to be struggling to overcome the $ 11,200 and $ 11,250 resistance levels. The simple 100-hour moving average is close to the $ 11,300 level to prevent an upward move. An important contraction triangle is also forming on the hourly chart of the BTC / USD pair, with resistance close to USD 11,200.
Bitcoin price trades above $11,000. Source: TradingView.com
The pair must clear the triangle resistance and 100 hour SMA to start a new increment. The next big resistance is near the $ 11,450 and $ 11,500 levels. It is close to the 50% fib retracement level of the recent decline from the high of $ 12,115 to the low of $ 10,591.
A successful close above $ 11,500 will most likely drive the price back into a bullish zone. In that case, the price is likely to rise again towards the resistance of $ 12,000.
New decline in BTC?
The triangle support is near the $ 11,000 level below which the bitcoin price could test the $ 10,850 support level in the short term.
The main support is near the $ 10,600 and $ 10,500 levels below which the bears are likely to seek a larger decline (possibly towards $ 10,000).
Hourly MACD – The MACD is slowly moving back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently rising to 50.
Major support levels – $ 11,000, followed by $ 10,850.
Major resistance levels – $ 11,200, $ 11,300 and $ 11,450.