After a strong recovery, bitcoin price struggled to gain momentum above $12,000 against the US Dollar.
The price topped near the $12,050 level and recently corrected gains below $11,500.
There is a major bearish trend line forming with resistance near $11,700 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair could either surpass $11,700 and $12,000 or decline further below the $10,800 support.
Bitcoin price is facing a couple of strong resistances near $11,700 and $12,000 against the US Dollar. BTC must surpass the $12,000 barrier to continue higher towards the $13,000 level.
Bitcoin Price Weekly Analysis (BTC)
This past week, bitcoin price started a strong recovery from the $9,700 swing support against the US Dollar. The BTC/USD pair climbed above the $10,500 and $11,000 resistance levels. The upward move was very positive since the price surpassed the $11,200 and $11,500 resistance levels. Finally, the price broke the $11,800 resistance and the 100 simple moving average (4-hours).
Finally, there was a break above the $12,000 resistance level, but the price failed to continue higher. A swing high was formed near $12,050 and the price recently corrected lower. It trimmed gains and declined below the $11,500 support level. Moreover, there was a break below the 23.6% Fib retracement level of the upward move from the $9,650 swing low to $12,050 swing high. The decline was such that the price spiked below the $11,000 support level.
However, the $10,800 level acted as a strong support. Additionally, bitcoin stayed above the 50% Fib retracement level of the upward move from the $9,650 swing low to $12,050 swing high. At the moment, the price is consolidating near the $11,200 level and the 100 simple moving average (4-hours). On the upside, there is a major bearish trend line forming with resistance near $11,700 on the 4-hours chart of the BTC/USD pair.
If there is an upside break above the $11,700 resistance zone, there are chances of a fresh increase. The next immediate resistance is near the $12,000 level, above which the price could accelerate towards the $12,500 and $12,800 level. On the downside, there is a connecting bullish trend line forming with support near $11,000 on the same chart. However, the main support is near the $10,800 level, below which there could be strong losses.
Looking at the chart, bitcoin price is clearly preparing for the next break either above $12,000 or below $10,800. As long as the price is above $11,000 and $10,800, there are chances of an upside extension above $12,000.
4 hours MACD – The MACD for BTC/USD is slowly moving back in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently just below the 50 level.
Major Support Level – $10.800
Major Resistance Level – $12,000
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