Technicals Suggest Bitcoin Could Correct To $10,700 Before Fresh Increase

Bitcoin is struggling to gain momentum against the US dollar above the $ 11,200 level. BTC is currently correcting lower and could test $ 10,700 before rising again.

  • Bitcoin shows signs of a downward correction below the $ 11,200 level.
  • The price is likely to find strong buying interest near the $ 10,700 level.
  • There was a break below a key bullish trendline on the hourly chart of the BTC / USD pair (Kraken data feed) with support near USD 10,900.
  • The pair could start a new rise as long as it is above USD 10,700 and USD 10,300 in the short term.

Profits to correct Bitcoin price

After a downward correction of $ 11,400, Bitcoin found support near the $ 10,700 level against the US dollar. BTC remained well above the $ 10,700 level and simple 100-hour moving average.

It climbed above $ 11,000 again, but struggled to gain strength above the $ 11,200 level. A high is forming near $ 11,195 and the price is currently correcting lower. It was trading below the $ 11,100 and $ 11,000 levels.

There was a break below a key bullish trendline on the hourly chart of the BTC / USD pair, with support near USD 10,900. The pair is now testing the 50% fib retracement level of the recent uptrend from $ 10,599 to $ 11,195.

Bitcoin

Bitcoin price above $10,000. Source: TradingView.com

The next major support is near the $ 10,820 level. It is close to the 61.8% fib retracement level of the recent uptrend from $ 10,599 to $ 11,195. Main support is near the $ 10,700 level.

Successfully closing below the $ 10,700 level could potentially result in a longer decline. In that case, the price will likely test the $ 10,300 support zone.

New rise in BTC?

As soon as the current wave of corrections is over, the Bitcoin price should resume its upward movement above USD 11,000. The first major resistance is near the $ 11,200 level.

Successful completion above the $ 11,200 level is required to start a new surge. The next big resistance is near the $ 11,400 and $ 11,500 levels. Further gains could open the doors for a push towards the main resistance of USD 12,000 in the short term.

Technical indicators:

Hourly MACD – The MACD is currently gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now correcting down towards 50.

Major support levels – $ 10,700, followed by $ 10,300.

Major resistance levels – $ 11,200, $ 11,400 and $ 11,500.



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