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  • The biggest task is to sustain gains towards $11,000 which starts by defending the short-term support at $10,600.
  • The failure to defend $10,600 tentative support could open a can of worms as Bitcoin lacks formidable support levels.

Bitcoin is back in the red after a few days of recording a winning streak. The upward correction followed last week-bottom price at $9,469. For now, the biggest task is to sustain gains towards $11,000 which starts by defending the short-term support at $10,600.

Elsewhere, the founder of Mobius Capital Partners LLP, Mark Mobius while speaking in an interview with Bloomberg TV bashed Bitcoin and other cryptocurrencies referring to them as “psycho currencies.” He outrightly gave gold a buy rating at any level saying that that it has the potential to correct higher. He added that the rise of Bitcoin and other digital currencies will push investors to the ‘real’ assets such as gold.

Bitcoin confluence levels

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Bitcoin is faced with tough decisions in the coming sessions. A break above the short-term resistance at $10,697 will allow for an assault at $10,808 (critical resistance). Several indicators converging at $10,697 hurdle include the 38.2% Fibonacci 1-Month, SMA 10 15-mins, Previous high 15-mins, SMA 5 15-mins, SMA 10 4-hour and Bollinger Band 15-mins upper

At the same time, the indicators making $10,808 a hard nut to crack range from SMA 10 1-hour, BB 1-hour middle, SMA 50 15-mins, 61.8% Fibo weekly, 23.6% 1-day and the 50 SMA 1-day among others.

On the downside, the failure to defend $10,600 tentative support could open a can of worms as Bitcoin lacks formidable support levels. The next support target is seen at $10,476 and is highlighted by the SMA 5 daily and the SMA 100 1-hour. In the event this zone caves in, a possible rescue is seen in a range between $10,003 and $10,144 – Pivot Point 1-day S2, 23.6% Fibonacci 1-month and the BB 4-hour lower.