There is a growing resistance as Bitcoin closes in on $12,000. Nevertheless, there has been commendable progress since August 2 when Bitcoin dived to lows around $10,537 (Fibonacci swing high). Some semblance of consolidation took place with Bitcoin price upside stalling under the 61.8% Fibonacci retracement level taken between the last swing high of $12,148 to a swing low at $10,537.
Meanwhile, the price action in the last 24 hours has been progressive enough to bring down the resistance at $11,700. Marginally upwards, Bitcoin is facing a growing resistance at a descending trendline. BTC/USD is trading at $11,695 amid a push by the bears to have the price spiral back into the range between the 61.8% Fibonacci levels and the lower 23.6% Fibonacci support zone.
According to the applied technical levels, Bitcoin price is likely to take up a sideways trend in the near term. This means that gains towards $12,000 will continue to be limited. On the other hand, higher support is likely to be established at the 61.8% Fibo level ($11,525).
BTC/USD 1-hour chart
For instance, the Moving Average Convergence Divergence (MACD) is taking up a horizontal motion after hitting a snag at 108. The motionless action means that both buying pressure and selling pressure are canceling out.
However, it is essential to note that it is the bulls who are not able to sustain an uptrend to $12,000. In other words, they are playing defense to keep the price above the 61.8% support. Therefore, keeping the selling pressure in check is among their priories. Glancing higher, gains above the descending trendline means that BTC/USD would be drawing closer and closer to $12,000.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com