Bitcoin Price Analysis: BTC/USD Balancing At The Edge Of A Cliff, How Can $11,000 Hold?

Published July 31, 2020 | Updated July 31, 2020

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Bitcoin Price Analysis: BTC/USD Balancing At The Edge Of A Cliff, How Can $11,000 Hold?

  • Bitcoin bulls are having an uphill task sustaining the price above $11,000.
  • Another slide below $11,000 could easily plunge to retest support at $10,500.

Bitcoin price is holding above $11,000, however, it has a bearish inclination in the short term. The trading on Thursday saw buyers revive the bullish momentum upwards but hit a wall at $11,200. A reversal took effect with Bitcoin seeking support at $11,000. At the moment, the price has already dived below the key ascending trendline support. This reinforces the increasing bearish pressure across BTC markets.

The price is also trading under the 50 Simple Moving Average (SMA) in the 1-hour range. The same correction on Thursday saw Bitcoin drop under $11,000 and even traded at $10,798. The developing bearish momentum is likely to continue in the near term with a break under $11,000 imminent.

Related readingBitcoin Price Prediction: Is BTC/USD Support At $11,000 The Springboard To $14,000?

BTC/USD 1-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Highlighting the bears’ influence over the price is the Relative Strength Index (RSI). This indicator is heading fast toward the oversold region. Meanwhile, it is struggling to hold the ground above 40. However, the sharp descent shows that bears are likely to win this tug of war.

The same downtrend is brought to light by the Moving Average Convergence Divergence (MACD) as it contemplates sliding into the bearish region. A bearish divergence is underway at the time of writing which emphasizes the dominance of the sellers.

On the downside, Bitcoin anticipates initial support at $10,900. Lower price corrections will embrace support at $10,800, $10,500 and $10,000 in that order. For now, it is clear that keeping Bitcoin above $11,000 is not without difficulty. Perhaps gains past $12,000 would call for more volume to catapult the crypto above $14,000.

Read moreEthereum Beats Lightning and Liquid in the Race for Bitcoin [BTC] On-boarding

Bitcoin Key Intraday Levels

Spot rate: $11,000

Relative change: -129

Percentage change: -1.15%

Trend: Bearish

Volatility: Low

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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John Isige 993 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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