- Bitcoin price is struggling to get support at $ 11,600 after the rejection of $ 11,800.
- BTC / USD is likely to create new demand at lower price points; preferably the $ 11,400 support.
Bitcoin price action is capped at less than $ 12,000. Additionally, increased sales activity is putting pressure on the support levels at $ 11,600 and $ 11,400. For example. The inability to hold above $ 11,800 on Monday resulted in prices spiraling below $ 11,700 to trade at $ 11,695 at the time of writing.
The longer Bitcoin takes to recover the ground above $ 12,000, the stronger the bearish case becomes. Additionally, more investors are likely to start looking elsewhere (altcoins) for price action if BTC is in the narrow range ($ 11,600 – $ 11,800).
Buying activity isn’t necessarily missing, but at the moment it’s not enough to support bullish action towards $ 12,000. If we expand the scope of Bitcoin techniques using simple indicators such as the RSI, we see a picture of consolidation clearly illustrated. The RSI is moving in a leveling move to 56.82 after losing ground due to the overbought.
MACD, on the other hand, emphasizes the bearish influence of sellers on price. In addition, the downtrend, there is a slight bearish divergence from the MACD. If the trend remains unchanged, Bitcoin could potentially break down to retest support at $ 11,400.
BTC / USD Daily Chart
Bitcoin confluence levels
Resistance 1: $ 11,756 – Welcome to the median curve of the Bollinger band 1 day, the SMA 100 4 hours, the previous high 4 hours, the Fibo 23.6% one day and the upper curve SMA 200 1 hour.
Resistance two: $ 11,878 – This is the area of greatest resistance. It is evidenced by the previous day high, the one day resistance pivot point and the one week 38.2% Fibo.
Support one: $ 11,634 – Home to the lower curve of the 15 minute Bollinger Band, the previous low one hour, the middle Bollinger band at 4 hours and the previous low at 4 hours.
Support two: $ 11,513 – The strongest support as highlighted by the confluence tool. It houses 161.8% Fibo in one day, the previous month high, the previous week low and the two day support pivot point.