In the previous look at Bitcoin (BTC/USD) I called the $11,700-$13,000 area a war zone for price action because we have seen sharp moves pushing price out of this zone in either direction.
As price approaches $11,700, which was also a recent resistance a couple of weeks ago, Bitcoin bulls appear to be tentative.
BTC/USD Daily Chart
- For the past few days, price has been holding under the "war zone" we described in the previous Bitcoin update.
- The longer price stays here, the more we will need a catalyst to break through.
- Also, the longer it stays under $11,700, the more likely a breakout will push it up towards $13,000.
- However, when I look at the daily chart, I still see some bearish signs.
- The most telling sign that bears are still in charge is the fact that the RSI is holding under 60.
- At this point, a break below $11,000 can bring in a dip towards $10,00 and the recent support pivot around $9360.
- We should expect some support between $9000-$10,000. In fact, support here would still suggest a bullish recovery is on its way.
- Otherwise, the $8000 area, and the $6000 area will the next critical support levels.
- Coming down to these levels will show that Bitcoin is either sideways or bearish.
For now, let's monitor the $11,000 near-term support. A break opens up further bearish. correction.