The price of Bitcoin is embracing support of $11,400 after levels just above $11,500 were rejected.
BTC / USD is likely to go back to $11,000 to increase its much-anticipated breaking power to $12,000.
Bitcoin Comment Analysis
The price of Bitcoin is falling below $11,500 following another failed attempt to sustain earnings above $11,500. However, it is impressive that the largest cryptocurrency has held above $11,100 following the recent fall that tested $11,400.
The sudden rise of BTC / USD is limited by the 50 Fibonacci recovery level taken between the final swing of $12,488 and the lowest level of $10,542. It is also a trend line resistance that stands in the way of movement.
The Trend line has continued to control the contraction of Bitcoin’s value since it formed at $12,488 (the highest level of 2020). Lock-step trading has forced a lower high and lower low model, suggesting that Bitcoin may have broken its upward momentum for a consistent downward trend.
From the technical levels observed in the 4-hour range, the prevailing horizontal trade is likely to last longer. The Relative Strength Index confirms the consolidation narrative, with the leveling motion at 44.56. This came after a rebound from 30 levels (recalling a drop to $ 11,100).
BTC / USD 4-hour chart
As long as RSI acts at this current level, BTC consolidation will be a priority. However, it is important to monitor the direction of the indicator because a break above 50 signals that the rising grip is increasing and there is the potential to increase towards $12,000.
The Moving Average Convergence Divergence (MACD) is stuck in negative territory, which confirms that sideways trading will take longer. The same indicator could help highlight the direction Bitcoin will take after horizontal trading. For now, keeping support above $11,400 remains the key for Bitcoin bulls because it allows them to rally strength before making another attempt to break the $12,000 resistance.
Intraday Levels Of Bitcoin
Spot rate: $11,440
Relative change: -31
Percent change: -0.27%
Trend: consolidation bias
Volatility: Low
