Bitcoin recovers from last week’s lows at $11,100 over the weekend but fails to rise above $11,800.
Bitcoin bulls are seeking support above $11,600 in a bid to keep the focus on $12,000.
Following a short term double-top pattern I discussed on Monday, Bitcoin as expected, recovered above several key seller congestion zones including at $11,400, $11,500 and $11,600. The largest cryptocurrency extended the bullish action above $11,700 but lost steam before hitting $11,800.
Meanwhile, Bitcoin is trading at $11,685 after suffering another rejection from the levels traded marginally above $11,800. Buyers are working hard to ensure that BTC stays above $11,600. This way, they will have ample time building the momentum and enough volume to take down the resistances at $11,800 and $12,000 respectively.
The retreat from levels above $11,700 is reflected in the reversal of the Relative Strength Index (RSI). The price action from the double-bottom pattern saw the indicator rise above 60. However, it failed to rally into the overbought region, hence the ongoing retreat.
On the other hand, the Moving Average Convergence Divergence (MACD) is holding slightly above the mean line. This means that buyers still have significance influence over the price. Unfortunately, it is not enough to consistently sustain gains above $12,000.
For now, it is okay to hold the price above $11,600 as long as bulls do not lose sight of $12,000. Note that, if support at $11,600 is shattered, Bitcoin could easily plunge to last week’s lows at $11,100.
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