- Bitcoin made a brilliant recovery from $9,000 to hit highs above $12,000.
- The bulls must protect $10,500, otherwise there a high chance that $10,800 support will be tested.
Bitcoin is bulls are anguished by the flash drop from the formidable highs at $12,315. Prior to the surge above the critical $12,000 level, Bitcoin explored the levels towards $9,000 last week. Tremendous support around $9,100 launched Bitcoin in a magnificent upward trajectory.
BTC/USD 4-hour chart
Although there was an immense struggle at $9,600, tremendous bullish momentum came from stepping past the 50 Simple Moving Average 4-hour charts. And later the 100 SMA 4-hour. The Explosive breakout above $10,800 gave BTC a mega boost above the 61.8% Fib retracement level taken between the last swing high at $12,315 to a swing low at $9,111.62.
For five days in a row, Bitcoin posted impressive gains. However, with the retracement from the highs seen today, it is likely that the winning streak will be broken. At the moment, Bitcoin is back under $12,000 after smashing through over $700 in a matter of minutes.
The immediate support is seen at $11,500 while Bitcoin battled selling pressure at $11,714 (current market value). It is vital that the bulls protect $10,500 support, otherwise there a high chance that $10,800 will tested. Moreover, the continued breakdown will explore the levels around the moving averages as well as $10,000.
On the other hand, the largest crypto’s technical displays a positive short-term picture. The 50 SMA gap above the 100 SMA is expanding. This could mean higher consolidation in the near-term. Besides, the Moving Average Convergence Divergence (MACD) may have slowed down the uptrend but is currently leveling around +375. Traders can observe the horizontal indicator to determine the next possible direction for the price.
Bitcoin Key Technical Levels:
Support Areas: $11,500, $10,800 and $10,000.
Resistance Areas: $12,000, $12,315 and $13,000.
Moving Averages: 50 SMA above 100 SMA suggests higher price consolidation.
MACD: Leveling trend hints sideways trading above $11,500 support.
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