TA: Bitcoin Just Saw Key Technical Correction, But 100 SMA Is Still Strong
Bitcoin price extended its rise above the $11,500 resistance against the US Dollar. BTC is correcting lower from $11,700, but it is likely to find support near the 100 hourly SMA.
- Bitcoin broke the key $11,500 resistance level and traded to a new weekly high at $11,724.
- The price is currently correcting lower below $11,500, but it is above the 100 hourly simple moving average.
- There is a connecting bullish trend line forming with support near $11,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh increase as long as it is above the $11,200 support and the 100 hourly SMA.
Bitcoin Price Remains Strong
After a couple of failed attempts, bitcoin price finally broke the $11,500 resistance against the US Dollar (as discussed yesterday). BTC even surpassed the $11,650 level and settled well above the 100 hourly simple moving average.
It traded to a new monthly high near $11,724 before starting a short-term downside correction. There was a break below the $11,600 and $11,500 levels. It is currently testing the 50% Fib retracement level of the recent increase from the $11,199 low to $11,724 high.
Bitcoin price trades below $11,500. Source: TradingView.com
The first major support is near the $11,400 level. It is close to the 61.8% Fib retracement level of the recent increase from the $11,199 low to $11,724 high. There is also a connecting bullish trend line forming with support near $11,320 on the hourly chart of the BTC/USD pair.
On the upside, the price is facing a short-term resistance at $11,500. The next key resistance is near the $11,700 level, but the main hurdle for the bulls is near $11,800. A break above $11,800 might increase the chances of more upsides above $12,000.
Dips Supported in BTC?
Bitcoin is likely to find support near the $11,400 level or the bullish trend line. The 100 hourly simple moving average is also near the $11,300 level.
The main support is likely forming near $11,200 (this week’s base), below which the bears are likely to gain strength. The next key support below $11,200 is near the $11,000 level.
Hourly MACD – The MACD is currently losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and it is close to the 50 level.
Major Support Levels – $11,400, followed by $11,300.
Major Resistance Levels – $11,500, $11,700 and $11,800.