HomeBitcoin NewsBitcoin Price Analysis: BTC Turns Red, Risk of More Downsides

Bitcoin Price Analysis: BTC Turns Red, Risk of More Downsides

Date:

Related stories

BTC Can Hit $100,000 Soon and $150,000 If Trump Wins, Predicts Standard Chartered

Standard Chartered, the British financial institution, claims bitcoin can...

BTC Falls Below $70,000, Triggered by Massive Selloff

As the crypto community awaited BTC to push past...
spot_imgspot_img
  • Bitcoin price declined heavily below the $11,800 and $11,500 support levels.
  • The price traded as low as $11,101 and it is now well below the 55 SMA (H4).
  • There is a key bearish trend line forming with resistance near $11,600 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair remains at a risk of more downsides as long as it is below the $11,500 level.

Bitcoin price is currently trading in a bearish zone below $11,500 against the US Dollar. BTC could extend its losses below the $11,200 and $11,000 levels in the near term.

Bitcoin Price Analysis

This past week, bitcoin price started a steady decline from well above the $12,000 level against the US Dollar. BTC broke many key supports near $11,800 to move into a bearish zone.

There was also a close below the $11,500 level and the 55 simple moving average (4-hours). It even broke the $11,250 level and traded to a new weekly low at $11,101. It is currently correcting higher and trading above the $11,220 level.

Bitcoin price is now facing hurdles near the $11,420 and $11,500 levels. There is also a key bearish trend line forming with resistance near $11,600 on the 4-hours chart of the BTC/USD pair.

The trend line is close to the 23.6% Fib retracement level of the recent decline from the $12,488 high to $11,101 low. If there is an upside break above the trend line resistance, the price could revisit the $11,800 resistance.

The 55 simple moving average (4-hours) is a major hurdle for the bulls near the $11,800 level. The 50% Fib retracement level of the recent decline from the $12,488 high to $11,101 low is also near the $11,794 level. Therefore, the price must surpass the $11,800 resistance to move into a bullish zone.

Conversely, there is a risk of more downsides below the $11,200 and $11,100 levels. The next support is near the $11,000 level, below which the bears are likely to aim a test of the $10,750 level.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly correcting losses from the $11,100 support. Overall, the price remains at a risk of more downsides as long as it is below the $11,500 level.

Technical indicators

4 hours MACD – The MACD is slowly losing pace in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now well below the 50 level.

Key Support Levels – $11,200 and $11,100.

Key Resistance Levels – $11,420, $11,500 and $11,800.

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.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img