BTC Is Currently Facing a Strong Resistance and Could Declin...
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BTC Is Currently Facing a Strong Resistance and Could Decline below $11,000 in the Near Term

In the past few days, the BTC/USD pair struggled to gain bullish momentum above the $11,300 and $11,400 levels. The recent high was close to $11,374 before the BTC price started a steady decline. It traded below the $11,200 level and settled well below the 100 hourly simple moving average (SMA). 

A recent low is formed close to $11,035 and the price is currently making an upside correction. The recovery was such that the price surpassed the 23.6% Fib retracement level of the recent downtrend from the $11,374 high to $11,035 swing low. However, it is currently facing hurdles near the $11,200 level. 

Most importantly, there is a short-term bearish channel forming on the hourly chart of the BTC/USD pair, with resistance near $11,230. The hourly MACD for the pair is slowly moving into the bullish zone. Its hourly RSI (Relative Strength Index) is currently rising towards the 50 level.

Above the channel resistance, the $11,250 is acting as a key resistance on the upside. The 50% Fib retracement level of the recent downtrend from the $11,374 high to $11,035 swing low is also near the $11,250 level to act as a resistance. 

Meanwhile, the main resistance is still close to the $11,350 and $11,400 levels. A successful close above the $11,400 level is needed for a fresh increase since it is near the 100 hourly SMA. In the mentioned bullish case, the price could rally towards the $11,600 and $11,800 levels in the coming sessions.

Conversely, if BTC fails to clear the channel resistance or the 100 hourly SMA, there is a risk of a sharp decline below the $11,000 support level. A clear break below the $11,000 support level could push the price towards the $10,850 support zone in the near term. The next major support is close to the $10,550 level, where the bulls are likely to lose control.

coinmag

Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.