Bitcoin [BTC] Pushed into Testing $11,000 Support: Upside Remains Capped

  • Bitcoin was hovering above $11,700 before it lost ground testing $11,000 support.
  • Bitcoin is likely to retest $11,000 support before the weekend sessions.

Instability across the market saw Bitcoin challenge $11,000 support after failing to make headway above $12,000. The intraday chart data from FXStreet shows Bitcoin trading at $11,219 and holding on to 0.69% gains on the day. The recovery from the recent slide below $10,000 made it above $12,000 on Wednesday. Bitcoin was hovering above $11,700 before it lost ground embarking on a gains-trimming exercise.

BTC/USD 1-h chart

Bitcoin price
Bitcoin Chart | Source: Tradingview

The volatility on the market maintains a high level with Bitcoin dancing between $13,800 and $9,700 in a period of ten days. Bitcoin price movements continue to catch analysts by surprise. However, Galaxy Digital CEO Mike Novogratz recently said that Bitcoin will consolidate between $10,000 and $14,000 before the next parabolic move.

According to technical analysis, Bitcoin is likely to retest $11,000 support before the weekend sessions. The upside is immediately capped by the 38.2% Fib retracement level taken between the last swing high of $$13,880 and a swing low of $9,666 which coincides with the 100 Exponential Moving Average (EMA). Movements above this zone will come face to face with $11,500 hurdle while $12,000 could mark the beginning of the correction to new highs towards $14,000.

As far as other technical levels are concerned, The Moving Average Convergence Divergence (MACD) inside the negative territory speaks a lot about the prevailing selling pressure. Moreover, the zero divergence means that the price could move into a sideways trading phase.

Initial support is observed at the 100 Simple Moving Average (SMA) slightly above $11,000. The intraday low at $10,774 could help prevent declines but key support areas range from $10,500, $10,000 and the major support at $9,000.

In my opinion, ‘Bitcoin is likely to stay above $10,000 before it embarks on another surge to new highs.’

BTC Key Technical Levels

Key Support Areas: $10,500, $10,000, and $9,000.

Critical Hurdle Levels: $11,274, $12,000 and $13,880.

MACD 1-h: Lack of divergence and stuck in the negative zone means upside could remain capped amid sideways trading.

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