Search ForexCrunch
  • Bitcoin recovery from the dip to $11,100 stalls under $11,500 as selling activities intensify across the market.
  • BTC/USD could be treated to a relatively smooth ride above towards $12,000 as long as the hurdle at $10,552 is overcome.

Bitcoin price has been forced to explore lower levels heading to $11,000. The move came into the picture after multiple failed attempts at sustaining gains above $12,000. Sellers have also been keen on revenging the impressive price action Bitcoin has achieved in less than three weeks.

Bitcoin hit a yearly high in addition, it appears to have established support at $11,000 if not $11,100 in spite of the losses incurred in the last 24 hours. BTC/USD is trading at $11,375 at the time of writing. Bulls are focused on building on the shallow recovery from the short term support at $11,100. However, it is apparent that this recovery will not come easy especially with the first confluence resistance at $10,552.

According to the confluence tool, the indicators in this zone ($10,552) range from the Fibonacci 38.2% one-day, the previous month high, the 100 SMA 15-minutes to the Fibonacci 61.8% one-week. It is the strongest seller congestion area which means that if broken the path towards $12,000 would be relatively easy.

However, there are other significant resistance zones as highlighted by the confluences at $11,670 and $11,789. The indicators at the latter zone include the SMA 200 15-minutes, SMA 50 1-hour, the Bollinger Band 1-hour upper and the Bollinger Band 4-hour middle. Similarly, the indicators in the zone at $11,670 are the previous high 15-minutes, the Bollinger Band 15-minutes upper curve, the previous high 4-hour and the Bollinger Band 1-hour middle.

On the downside, initial support is seen at $11,197 as highlighted by the previous low 1-hour, the Bollinger Band 15-minutes lower curve, the previous low 1-hour and the Fibo 38.2% one-week. The second key support is shown at $11,079; a confluence formed by the previous day low and the Bollinger Band 1-hour upper. Other key support levels include $10,961, $10,606 and $10,487.

Read more: Cryptocurrency Market News: Bitcoin and gold correlation hit record high as billions wiped off in fresh crypto selloffs