Search ForexCrunch
  • Bitcoin price holding the ground above $11,700 to give bulls time to plan recovery above $12,000.
  • BTC/USD bulls must gather the proper volume before launching the rocket above $12,000 to avoid frequent retreats.

Bitcoin price appears to be settling around $11,700 after a minor recovery from Thursday’s slump to levels around $11,500. The reversal back to $12,000 is proving to be an uphill task probably because most analysts predict doom before dawn for the largest crypto by market capitalization.

In other words, Bitcoin delayed reversal after plummeting from $12,500 means that it has limited power for gains at the moment. To achieve significant gains, bitcoin could explore lower levels around $11,100 support. This way, more buyers would enter the market according to the expected upward momentum the proper volume for sustained gains not only above $12,000 but also towards $13,000.

The daily chart shows Bitcoin trading at $11,728, marginally below the accelerated trendline (broken line). Support seems to have been established above $10,700 and reinforced by the RSI as it starts to move sideways at 56. Moreover, the MACD is also sitting in the positive region. It has slowed down the downward momentum after rejection at 660.

The MACD is also holding ground above 440 to show that buying activities are ongoing. However, it’s not enough for significant gains eying $12,000. The influence of the bulls over the price is also emphasized by the gap made by the 50-day SMA above the longer-term 200-day SMA.

BTC/USD daily chart

BTC/USD price chart

Bitcoin confluence levels

Marginally above the prevailing market price, a strong resistance continues to limit efforts put in place from the bullish camp. This initial resistance lies at $11,764 and converges indicators such as the previous high 1-hour, the Bollinger Band 15-minutes upper curve, the SNA 200 1-hour and SMA 50 4-hour. If buyers managed to overcome the resistance in this first zone, they must prepare to deal with more hurdles at $11,886, $12,008 and $12,225.

On the flip side, support levels are in place to hold Bitcoin from plunging closer to $11,000 starting with the confluence at $11,646 as highlighted by the pivot point one-day support one and the previous low one-day. There are multiple medium-strong support areas ranging from $11,521, $11,399, $11,156 and $10,912.