Bitcoin price retested the $10,750 support and recently corrected higher against the US Dollar. BTC must stay above $10,750 to start a fresh increase in the near term.
- Bitcoin is struggling to gains momentum above the $11,000 and $11,000 resistance levels.
- The price is currently trading well above the $10,750 support and testing the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $10,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could nosedive if the bulls fail to protect the $10,750 support zone in the near term.
Bitcoin Price Holding Key Support
After trading close to the $11,200 level, bitcoin price started a downside correction against the US Dollar. BTC corrected below the $11,000 level and the 100 hourly simple moving average.
However, the bulls were able to protect the main $10,750 support zone. A low is formed near the $10,767 level and the price is currently rising. It broke the $10,850 and $10,880 levels to move back into a short-term positive zone.
There was also a break above a key bearish trend line with resistance near $10,880 on the hourly chart of the BTC/USD pair. Bitcoin tested the 50% Fib retracement level of the recent decline from the $11,180 high to $10,767 low.
Bitcoin price approaching $11,000. Source: TradingView.com
The price is currently trading well above the $10,750 support and testing the 100 hourly simple moving average. On the upside, the first major resistance is near the $11,000 level.
The next key resistance is near the $11,020 level or the 61.8% Fib retracement level of the recent decline from the $11,180 high to $10,767 low. If there is a clear break above the $11,000 and $11,020 levels, the price is likely to continue higher.
The next key hurdle for the bulls could be near the $11,200 level. Any further gains may perhaps open the doors for a larger upward move towards the $11,500 level in the near term.
Risk of Bearish Break in BTC?
If bitcoin fails to settle above the $11,000 pivot level, there is a risk of another decline. The main support on the downside is near the $10,750 zone, where the bulls took a stand on many occasions.
A clear break below the $10,800 and $10,750 support levels could spark a sharp decline. The next major support where the bulls might appear is near the $10,550 level.
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and approaching the 50 level.
Major Support Levels – $10,850, followed by $10,750.
Major Resistance Levels – $11,000, $11,020 and $11,200.
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