Bitcoin [BTC] Pushed into Testing $11,000 Support: Upside Remains Capped

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Bitcoin [BTC] Pushed into Testing $11,000 Support: Upside Remains Capped

  • Bitcoin was hovering above $11,700 before it lost ground testing $11,000 support.
  • Bitcoin is likely to retest $11,000 support before the weekend sessions.

Instability across the market saw Bitcoin challenge $11,000 support after failing to make headway above $12,000. The intraday chart data from FXStreet shows Bitcoin trading at $11,219 and holding on to 0.69% gains on the day. The recovery from the recent slide below $10,000 made it above $12,000 on Wednesday. Bitcoin was hovering above $11,700 before it lost ground embarking on a gains-trimming exercise.

BTC/USD 1-h chart

Bitcoin price
Bitcoin Chart | Source: Tradingview

The volatility on the market maintains a high level with Bitcoin dancing between $13,800 and $9,700 in a period of ten days. Bitcoin price movements continue to catch analysts by surprise. However, Galaxy Digital CEO Mike Novogratz recently said that Bitcoin will consolidate between $10,000 and $14,000 before the next parabolic move.

According to technical analysis, Bitcoin is likely to retest $11,000 support before the weekend sessions. The upside is immediately capped by the 38.2% Fib retracement level taken between the last swing high of $$13,880 and a swing low of $9,666 which coincides with the 100 Exponential Moving Average (EMA). Movements above this zone will come face to face with $11,500 hurdle while $12,000 could mark the beginning of the correction to new highs towards $14,000.

As far as other technical levels are concerned, The Moving Average Convergence Divergence (MACD) inside the negative territory speaks a lot about the prevailing selling pressure. Moreover, the zero divergence means that the price could move into a sideways trading phase.

Initial support is observed at the 100 Simple Moving Average (SMA) slightly above $11,000. The intraday low at $10,774 could help prevent declines but key support areas range from $10,500, $10,000 and the major support at $9,000.

In my opinion, ‘Bitcoin is likely to stay above $10,000 before it embarks on another surge to new highs.’

BTC Key Technical Levels

Key Support Areas: $10,500, $10,000, and $9,000.

Critical Hurdle Levels: $11,274, $12,000 and $13,880.

MACD 1-h: Lack of divergence and stuck in the negative zone means upside could remain capped amid sideways trading.

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Bitcoin [BTC] Pushed into Testing $11,000 Support: Upside Remains Capped
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Bitcoin [BTC] Pushed into Testing $11,000 Support: Upside Remains Capped
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Bitcoin was hovering above $11,700 before it lost ground testing $11,000 support. Bitcoin is likely to retest $11,000 support before the weekend sessions.
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Author: John Isige

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 247 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

Follow John @