- The diminishing momentum above $12,000 meant a gap being explored by the bears.
- The MACD displays a positive picture for BTC in the near-term.
Bitcoin bulls are intentional about finding higher support for Bitcoin. This battle comes after BTC tried and failed to extend gains past $12,328 (intraday high). The diminishing momentum meant a gap that was explored by the bears. Bitcoin is back under $12,000 and exchanging hands at $11,795.
Looking at the 4-hour chart, Bitcoin is still trading above the upper and lower descending trend lines as observed on the chart. Moreover, the price is sitting above both the 50 Simple Moving Average (SMA) and the 100 SMA.
Also read: Cryptocurrency market update: Bitcoin punctures $12,000, Walmart’s crypto and Facebook’s Libra
The forceful breakdown through $12,000 key level thrust towards $11,500 support. However, a balance is tentatively forming at $11,536. As long as the 50 SMA remains above the 100 SMA, traders can expect BTC to consolidate at higher levels.
Meanwhile, technical analysis shows Bitcoin’s ability to defend $10,500 possible reliable support. A glance at the Moving Average Convergence Divergence (MACD) displays a positive picture for BTC in the near-term. Besides, maintaining a gradual upward slope in the positive region, the MACD divergence is increasing as a signal for growing buying entries.
BTC/USD 4-hour chart
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