Bitcoin price is holding a key support near the $11,230 level against the US Dollar while analysis suggests that it’s going to rally above $11,500 as long as it is above the $11,000 pivot level. Bitcoin started a downside trend after it failed to clear the $11,600 resistance zone. The price is trading above the $11,000 pivot level and the 100 simple moving average (4-hours). The pair could start a strong upward move when it clears the main $11,450 and $11,500 resistance levels.
Bitcoin Holding Key Support
This past week, bitcoin attempted a fresh upside break above the $11,550 and $11,600 resistance levels. However, the eventually it failed to gain traction above $11,600.
A high was formed near $11,627 before the price started a fresh decline. It broke the $11,500 support level and retested the main $11,200 support zone. A low is formed near $11,200 and the price is now correcting higher.
There was a break above the $11,300 level. Bitcoin surpassed the 23.6% Fib retracement level of the recent decline from the $11,627 high to $11,200 low.
It looks like there is a declining channel or a bullish flag pattern forming with resistance near $11,450 on the 4-hours chart of the BTC/USD pair. An immediate resistance is near the $11,420 level since it is close to the 50% Fib retracement level of the recent decline from the $11,627 high to $11,200 low.
To start a new rally, the price must break the $11,420 level and the channel resistance. The next key resistance is near $11,500 level, above which the price can even surpass the $11,600 and $11,700 level. Any further gains could lead bitcoin towards the $12,000 resistance level.
Bitcoin price analysis: Downsides Could Be Limited in BTC
If bitcoin cannot clear the channel resistance or $11,500, there is a risk of a fresh decline. The main support levels on the downside is near the $11,230 and $11,000 levels.
A downside break below the $11,230 and $11,200 support levels could be a beginning for a sharp decline towards the $11,000 support (key resistance turned support).