Bitcoin price leg-down trades $11,567 level before recovery slightly to the 50% Fibonacci level.
Bitcoin bulls could create more volume at a lower price level close to $11,000 in order to rise to $13,000 over the weekend.
Bitcoin price once again is stuck under $12,000. This comes after a sharp declines on Wednesday that saw Bitcoin spiral massively from levels above $12,200. Before that, BTC had advanced higher to test the key level at $12,500.
The lower leg tested price level at $11,567 but Bitcoin bulls fully embraced support formed by the 38.2% Fibonacci retracement taken between the last swing high of $12,495.18 to a swing of $11,119.14. While a recovery has already taken place, it has not been enough to bring down the resistance at the 50% Fibo let alone the seller congestion at the critical $12,000.
In the meantime, BTC/USD is dancing at $11,766 following a minor reversal from the 50% Fibo resistance. This shows that if buyers are not careful, sellers will have no mercy as their target is see BTC trading much closer to $11,000.
According to short term price analysis, Bitcoin is slightly in the hands of the bulls. The RSI, for instance, has recovered to a higher level. However, the recovery has not been enough to hit the midline (50). Similarly, the MACD shows that buyers are gaining traction but the recovery will not be quick as investors would like. Besides, some buyers are waiting for confirmation that Bitcoin can break above the $12,000 market again. In other words, Bitcoin is not accorded the right volume it requires for a leg up to $13,000 and then $14,000.
As the weekend session draws nigh, bulls look forward to pushing Bitcoin above $13,000. However, lack of enough trading volume could delay this mission. Meanwhile, a drop to levels closer to $11,000 could create new demand for BTC and increase the volume for a technical breakout to highs around $13,000.
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 firstname.lastname@example.org