After a recent sharp downside correction, the BTC/USD pair found support above the $11,550 level. Though BTC traded well above the $11,550 level, it still struggled to break above the 100 hourly moving average (SMA).
A recent low is formed near $11,581 and the price is currently correcting higher. The correction wave was such that the price broke the $11,800 resistance zone. There was also a break above the 23.6% Fib retracement level of the recent sharp decline from the $12,491 high to $11,580 swing low.
Moreover, there was a break above a key bearish trend line on the hourly chart of the BTC/USD pair, with resistance near $11,810. BTC is currently showing a few positive signs above the $11,800 level. The hourly MACD for the pair is slowly moving into the bullish zone. Its hourly RSI (Relative Strength Index) is now above the 50 level.
On the upside, the BTC price is facing a strong resistance near $11,950 and the 100 hourly SMA. The 50% Fib retracement level of the recent sharp decline from the $12,491 high to $11,580 swing low is also near $12,035. Therefore, to start any decent increase in the near term, the bulls need to clear the 100 hourly SMA and then gain strength above $12,000. A clear break above the $12,000 level could easily push the price towards the $12,150 and $12,250 levels. Meanwhile, the main hurdle is still near the $12,500 level for a larger rally.
On the other hand, if BTC fails to continue higher above the 100 hourly SMA or the $12,000 barrier, it could trigger a bearish reaction. An initial support on the downside is near the $11,650 level. The main support is forming close to the $11,550 level. If there is a clear close below $11,550 and $11,500, there is a risk of a larger decline towards $11,200 or $11,000 in the coming sessions.