Bitcoin price started a downside correction after it topped near the $12,489 level.
The price is declining and it is trading below the $12,000 level and the 55 SMA (H4).
There is a crucial bullish trend line forming with support near $11,640 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
The pair must stay above the $11,640 and $11,400 support levels to start a fresh increase.
Bitcoin price is currently correcting lower from the $12,500 barrier against the US Dollar. However, BTC is likely to find a strong buying interest near $11,640 or $11,400.
Bitcoin Price Analysis
This past week, bitcoin price extended its rise above the $12,000 and $12,100 resistance levels against the US Dollar. BTC even climbed above the $12,400 level and traded to a new monthly high at $12,489.
However, it failed to continue higher above the $12,500 resistance. It is currently correcting lower and trading below the $12,250 support level. There was a break below the 50% Fib retracement level of the upward move from the $11,124 swing low to $12,498 high.
It is now trading below the $11,900 level and the 55 simple moving average (4-hours). An initial support is near the $11,645 level. It coincides with the 61.8% Fib retracement level of the upward move from the $11,124 swing low to $12,498 high.
There is also a crucial bullish trend line forming with support near $11,640 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the trend line, the price could continue to move down below $11,500.
The next major support is near the $11,400 level, below which there is a risk of a larger decline in the coming sessions. On the upside, the $12,000 level might act as a strong resistance. A clear break above $12,000 and a close above the 55 simple moving average (4-hours) might start a fresh increase.
The next key resistance for the bulls could be $12,250, above which the price is likely to rise towards the $12,500 barrier in the coming sessions.
Looking at the chart, bitcoin price is clearly correcting gains from the $12,450 and $12,500 resistance levels. Overall, the price must stay above the $11,640 and $11,400 support levels to start a fresh increase.
4 hours MACD – The MACD is slowly gaining pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Key Support Levels – $11,640 and $11,400.
Key Resistance Levels – $12,000, $12,250 and $12,500.
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