- BTC/USD is range-bound below $12,000 during early Asian hours.
- A sustainable move $12,000 is a pre-requisite for an extended recovery.
Bitcoin made another attempt to break above critical $12,000 during early Asian hours, but the upside momentum failed to gain traction. The most popular cryptocurrency retreated to $11,838 by the time of writing, though it is still 2% higher from this time on Wednesday.
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Looking technically, the coin is at risk of further decline as a failed attempt to settle above $12,000 indicates that the market is dominated by bearish sentiments. We will need to see a sustainable move above this handle for the upside to gain traction and take the price towards the next key barrier of $12,325 (this week’s high).
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On the downside, the initial support is created on approach to $11,700 by a combination of strong technical indicators including the middle line of 4-hour Bollinger Band, SMA50 (Simple Moving Average) 1-hour and the lower line of 1-hour Bollinger Band. Once this area is cleared, the downside is likely to be extended towards $11,207. That’s where BTC/USD bottomed out after the recent massive sell-off.
BTC/USD, 1-hour chart
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