Bitcoin price free-falls below several support areas in a bid to create fresh demand at a lower price level.
Recovery will remain mundane in the current Asian session and probably the European session according to technical levels.
Bitcoin plunged to refresh levels towards $11,000 as expected. The largest cryptocurrency has since the week started targeted levels above $12,000. However, buyers have been willing but unfortunately failed to gather the right amount of volume to sustain gains. On the other hand, bears were bound to gain traction, forcing Bitcoin below critical support areas like $11,600 and $11,400.
The largest cryptocurrency explored levels around $11,000 leaving the support at $11,000 untested. A shallow recovery has seen Bitcoin bounce to $11,334 (prevailing market value). I believed that a slide to levels close to $11,000 was going to send Bitcoin rattling through barriers and within no time overcome the psychological hurdle at $12,000.
However, according to the various technical levels, recovery is going to be gradual. Therefore, it is vital that bulls hold onto all the gains they get and be careful not lose sight of the critical $12,000 level. Otherwise, the support at $11,000 is well within reach or worse the bearish leg could extend towards $10,500.
The Relative Strength Index (RSI), for instance, is holding the ground marginally below the midline (50). The downtrend appears to have been averted in favor of a reversal. A return above 50 would signal continued upward movement as Bitcoin takes down the resistance currently at $11,400 and $11,600.
The Moving Average Convergence Divergence (MACD) brings to light the fact that selling pressure has not entirely been purged from the market. Besides, this is the reason why recovery is lethargic and a reminder that they cannot afford to waiver in spite of the headwinds standing in the way 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