Bitcoin recovered the ground lost when it slipped under $11,000 on Tuesday. For a period of time, the largest cryptocurrency was stuck between the support at $10,800 and the resistance at $11,000. The level at $10,900 also became instrumental in the recovery witnessed on Thursday.
Related reading: BTC-ETH Price Correlation Drops; Is Another Bitcoin Bull Run Approaching?
BTC/USD reclaimed the position above $11,000 at some point stepping above $11,300. However, the price stalled before hitting the recently formed yearly high around $11,400. Meanwhile, Bitcoin retreated towards the key support at $11,000. At the time of writing, BTC is doddering at $11,076 amid a developing bearish trend.
Looking at the BTC/USD 4-hour trading chart, the price has dropped below the sharply ascending trendline. In spite of the drop, support at $11,000 is expected to continue staying intact. It will also function as the springboard to $14,000 as shared by the head of Galaxy Digital, Michael Novogratz.
According to Novogratz’s prediction, Bitcoin has the potential to hit $14,000 by October. This prediction was, however, not made from a technical point of view but a fundamental one. Besides, to sustain a rally both technical and fundamental factors are required. The CEO believes that the increasing inflation rates around the world would give Bitcoin the kick it needs to finally make the grand journey to $20,000 by the end of 2020.
“Bitcoin still has a lot of retail interest in it. A lot of that retail interest shifted to the story stocks, to the tech stocks, because they were just more fun, yesterday you saw a lot of money shift back over to gold and bitcoin.”
For now, Bitcoin is trying to nurture a sideways trading action as observed by the sidelong moving RSI and MACD. A bearish divergence is coming into the picture with the MACD, which means that buyers must be aware of the selling pressure in the market. Defending $11,000 support is key among the factors for the bullish case to $14,000.
Read more: Bitcoin [BTC] Flows from Exchange and Miners Depict Bullishness
Spot rate: $11,078
Relative change: -18
Percentage change: -0.16%
Trend: Bearish bias
Volatility: Low
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