- Bitcoin recovers but marginally; resistance at $11,600 stays intact.
- A rising wedge pattern suggests that a reversal is in the offing while immense support is anticipated.
Bitcoin recovered slightly from the levels discussed on Thursday around $11,400. The flagship cryptocurrency tested the resistance at $11,600 but failed to pierce through. Meanwhile, BTC is dancing at $11,530 even as buyers work extra had to keep the uptrend going.
A reversal seems imminent in the near term, especially with the resistance at $11,600 remaining intact. Besides, more hurdles are anticipated at $11,800. The Relative Strength Index (RSI) illustrates a weakening bullish momentum in favor of a sluggish sideways action.
Looking at IntoTheBlock’s IOMAP model, the flagship cryptocurrency needs to flip the resistance between $11,548 and $11,895 for gains above $12,000 and towards $13,000. Previously, 1 million addresses bought approximately 715,000 in this range.
On the downside, if buyers fail to clear the resistance above, Bitcoin will be forced to explore lower levels to create the demand. However, the bellwether cryptocurrency is accorded immense support. In other words, we cannot expect a massive plunge for BTC in the near term. However, the bearish leg might extent to the support between $11,200 and $11,529. Here, nearly 2 million addresses previously bought about 1 million BTC.
Bitcoin IOMAP chart
A rising wedge pattern is forming on the 4-hour chart. It shows a decreasing volume for Bitcoin and a weakening uptrend. A reversal is projected mostly if BTC/USD bounces off the resistance at $11,600 and $11,800.
BTC/USD 4-hour chart
The losses could go as far as $11,200 but the 50 Simple Moving Average will absorb some selling pressure. If push comes to shove and declines continue the 100 SMA is in line to provide anchorage slightly above $10,800. Demand is likely to increase at these levels, giving Bitcoin a boost above $12,000.
Bitcoin Intraday Levels
Spot rate: $11,536
Relative change: 28
Percentage change: 0.24%
Trend: short term bullish bias