- 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.