Bitcoin Won’t Surge Past $11k Just Yet: Indicators Show Vulnerability to Short-Term Correction

Bitcoin prolonged its rise in the direction of the $10,500 resistance space towards the US Greenback. BTC is now exhibiting indicators of exhaustion and it may dip a couple of factors earlier than persevering with greater.

  • Bitcoin value is struggling to acquire momentum above $10,400 and $10,450 towards the US Greenback.
  • The worth traded to a brand new 2020 excessive at $10,492 and it’s at present correcting decrease.
  • There’s a brief time period ascending channel forming with assist close to $10,350 on the hourly chart of the BTC/USD pair (knowledge feed from Kraken).
  • The pair may dip in the direction of the $10,300 assist or $10,200 earlier than it climbs above $10,500.

Bitcoin Dropping Bullish Momentum

This week, bitcoin bounced again above the $10,000 resistance towards the US Greenback. BTC value even broke the $10,200 resistance and the 100 hourly easy transferring common.

Not too long ago, there was a push in the direction of the $10,500 resistance space, however the bulls failed to acquire bullish momentum. A brand new 2020 excessive is shaped close to $10,492 and the value is at present correcting decrease.

An preliminary assist is close to the $10,400 degree. Nonetheless, the primary key assist is seen close to the $10,350 degree. Extra importantly, there’s a brief time period ascending channel forming with assist close to $10,350 on the hourly chart of the BTC/USD pair.

Bitcoin Value

Under the channel assist, the 23.6% Fib retracement degree of the latest wave from the $9,711 low to $10,492 excessive is at $10,300 to present assist.

On the upside, bitcoin value appears to be going through a troublesome resistance close to $10,500. The bulls appear to be exhausted and there are possibilities of a brief time period correction under $10,350.

The primary assist on the draw back is close to the $10,200 degree, the place the bulls are possible to take a stand. Any additional downsides may lead the value in the direction of the important thing $10,100 assist space. It coincides with the 100 hourly SMA and the 50% Fib retracement degree of the latest wave from the $9,711 low to $10,492 excessive.

Upside Targets

As soon as the present correction wave is full, the value is probably going to resume its rise above $10,450 and $10,500. Within the talked about case, bitcoin may intention a pointy transfer in the direction of the $11,000 barrier.

An intermediate resistance could possibly be $10,800. The general value motion suggests there are excessive possibilities of a minor dip in the direction of $10,200 or $10,100 earlier than a run in the direction of $11,000.

Technical indicators:

Hourly MACD – The MACD is slowly transferring into the bearish zone.

Hourly RSI (Relative Power Index) – The RSI for BTC/USD continues to be above the 50 degree, with optimistic indicators.

Main Help Ranges – $10,200 adopted by $10,100.

Main Resistance Ranges – $10,450, $10,500 and $11,000.

About Tom Greenly

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