HomeBitcoin NewsBitcoin Price Analysis: BTC Correcting Gains, Key Support Nearby

Bitcoin Price Analysis: BTC Correcting Gains, Key Support Nearby

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  • 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.

Bitcoin Price
Bitcoin Price

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.

Technical indicators

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.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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