BTC Starts a Downside Correction and Bulls Might Lose Contro...
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BTC Starts a Downside Correction and Bulls Might Lose Control If It Breaks the $11,500 Support

After a sharp upward move in the past few sessions, the BTC/USD pair traded close to the $12,500. The BTC price traded as high as $12,491 and recently started a downside correction. The correction wave was such that, there was a break below the $12,200 support level. The price even broke the $12,000 support zone and the 100 hourly simple moving average (SMA). However, the $11,800 level acted as a strong support to prevent further losses.

Notably, there is also a crucial bullish trend line forming on the hourly chart of the BTC/USD pair, with support near $11,850. The pair is currently trading near the 23.6% Fib retracement level of the recent downward move from the $12,491 high to $11,813 low. The hourly MACD for the pair is slowly losing momentum in the bearish zone. Its hourly RSI (Relative Strength Index) is now well below the 50 level.

On the upside, the $12,000 level is acting as a short-term resistance along with the 100 hourly SMA. The next resistance is close to the $12,100 level and a connecting bearish trend line on the same chart. The main resistance is now close to the $12,150 level or the 50% Fib retracement level of the recent downward move from the $12,491 high to $11,813 low. A successful push above the trend line, $12,150, and $12,200 is necessary to begin a fresh uptrend in the near term. In the mentioned bullish case, the price might revisit the $12,500 level.

On the other hand, if BTC struggles to start a fresh increase above $12,100 and $12,200, it could continue its downtrend. The first major support on the downside is close to the $11,800 level. The next major support is close to the $11,650 and $11,550 levels, below which the bulls are likely to lose control in the coming sessions.

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.