- BTC/USD scaled the levels impressively in the last week stepping above $13,000.
- BTC/USD likely to cement the position above $11,500 and push for correction above $12,000.
Bitcoin depreciated greatly in value this week. The declines witnessed occurred just after BTC/USD scaled the levels impressively in the last week not only rising above $10,000 but forming a new yearly high almost at $14,000. The rollercoaster ride was so violent that expected support levels did nothing to stop the losses.
As the market disembarks the rollercoaster, Bitcoin is seen fighting to stay above $11,000. Of course, this is after the reversal from the weekly support formed at $10,300. The breakout from the flag pattern we discussed yesterday did not happen as we thought. Instead, Bitcoin broke under the flag pattern support as well as the 38.2% Fib retracement level taken between the last swing high of $13,878.18 and a swing low of $10,302.
BTC/USD hourly chart
A shallow correction from the continuation pattern is limited by the support turned resistance at the 38.2% Fib level. Meanwhile, Bitcoin is trading at $11,646 amid slightly bullish momentum.
Technically, the bulls have the control and the stronger grip on the price. With the Relative Strength Index (RSI) staying above average, BTC is likely to cement the position above $11,500 and push for correction above $12,000. This is also supported by the Moving Average Convergence Divergence (MACD) whose incredible recovery from -415 on the hourly chart into the positive region continues to increase the bulls’ confidence in the momentum.
Despite the current correction from the recent highs, Bitcoin in trading at more than triple its value at the beginning of 2019. Experts like Mike Novogratz, CEO of Galaxy Digital say that Bitcoin will consolidate between $10,000 and $14,000 in the coming weeks. A correction towards $20,000 is expected in the course of the second half of 2019.
Bitcoin Key Technical Levels
Key support areas: $11,000 and $10,000.
Critical resistance: $12,500 and $13,878.
MACD hourly chart: Recovery from the negative is a key indicator for rising selling pressure.
RSI hourly chart: Sustenance above average to keep Bitcoin above $11,000.