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  • Bitcoin price action follows a lower low pattern.
  • Oversold levels could signal a reversal above $11,000.

Bitcoin sellers ravaged through the tentative support at $11,000. The price action follows a couple of days of consolidation above $11,000. Looking back, last week’s high at $12,343 marked the end of the blissful move from the support around $9,100.

From the recent high, Bitcoin price action follows a lower low pattern. The dive under the pennant pattern is exploring the levels towards $10,800. The gravitating trend is supported by key technical levels. The Relative Strength Index (RSI) dived into the oversold. At the same time, the Moving Average Convergence Divergence (MACD) negative divergence signals further break down in the shirt-term.

It is essential that the bulls defend $9,800 support or else risk Bitcoin breaking down to the recent lows at $9,115. Oversold levels could signal a reversal above $11,000.

BTC/USD 1-hour chart