- Bitcoin falls back to $11,300 but creates fresh demand for the ultimate lift-off to $12,000.
- BTC/USD is battling the seller congestion at the 50 SMA ahead of another breakout above a descending trendline resistance.
Bitcoin slumped towards $11,000 once again as predicted on Thursday. The dive back to the drawing board occurred following BTC’s failure to contain accrued gains above $11,500. The reversal failed to find support at $11,400, forcing Bitcoin farther down. The price retested support at $11,100, in turn, forming a double-top pattern.
A double-top pattern is a typical textbook trading pattern used in technical analysis to signal a reversal from a downtrend. The two bottom prices highlight the strong support which later lead a bounce upwards just like the one on BTC/USD 1-hour chart.
At the time of writing, Bitcoin has scaled several resistance including $11,200 and $11,300. The largest crypto is doddering at $11,374 while battling a seller congestion brought about by the presence of the 50 Simple Moving Average (SMA) at $11,375
BTC/USD 1-hour chart
Besides the double-bottom pattern, Bitcoin is gradually falling back into the hands of the bulls as highlighted by the Moving Average Convergence Divergence (MACD). The minor bullish divergence from the MACD hints that the price has an inclination to the north in the short term. The recovery is also reflected by the RSI’s movement from levels close 30 to the current 52.19.
There is a possibility of Bitcoin taking on sideways trading if the RSI holds above the midline while movement to let’s say 60 is capped. Consolidation is not necessarily a bad thing as it would buyers ample time to gather the strength needed to overcome resistances at $11,600, $11,800 and the ultimate $11,800.
Bitcoin Intraday Levels
Spot rate: $11,375
Relative change: 46.42
Percentage change: 0.41%
Trend: Short bullish bias