Bitcoin price failed to clear the $10,900 and $11,000 resistance levels against the US Dollar. BTC is currently declining and it seems like there are chances of an extended decline to $10,000.
- Bitcoin failed to gain strength and it remained well below the $11,000 resistance.
- The price is now trading below the $10,800 support and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $10,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at a risk of a sharp decline if it breaks the $10,650 and $10,550 support levels.
Bitcoin Price is Retreating Lower
Yesterday, we saw a decent increase in bitcoin price above $10,800 and discussed the importance of the $11,000 resistance against the US Dollar. BTC did fail to gain strength and it remained well below the $11,000 resistance.
As a result, there was a bearish reaction and the price declined below the $10,800 support level. There was a clear break below the 50% Fib retracement level of the upward move from the $10,600 swing low to $10,945 high.
The price is now trading below the $10,750 level, the 100 hourly simple moving average, and the 76.4% Fib retracement level of the upward move from the $10,600 swing low to $10,945 high. It seems like the $10,650 level is currently acting as a support.
Bitcoin price declines below $10,800. Source: TradingView.com
There is also a key bullish trend line forming with support near $10,650 on the hourly chart of the BTC/USD pair. If there is a downside break below the trend line support, the price could revisit the $10,550 support zone.
On the upside, the price is likely to face sellers near the $10,800 level. The main hurdle for the bulls is near the $11,000. A successful close above the $11,000 resistance is must for a sustained upward move in the near term.
Downsides Break in BTC?
If bitcoin fails to recover above the $10,800 resistance, there is a risk of a downside break. The first key support is near the $10,650 level.
The main support zone is forming near the $10,550 and $10,500 levels. A clear break below $10,500 is likely to start a sharp decline and the price could even test the $10,000 area.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 40 level.
Major Support Levels – $10,650, followed by $10,550.
Major Resistance Levels – $10,800, $10,950 and $11,000.
by Aayush Jindal on September 29, 2020 at 09:28AM
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