- Bitcoin price rejection from $12,492 tumbles freely to test support at $11,800.
- BTC/USD is held in position by the 100 SMA; existing buying pressure is not enough to contain the price above $12,000.
Bitcoin price is struggling to find higher support within the $11,000’s range following a rejection at August new high around $12,492. The sharp drop was fueled by the dip below the most tentative support at $12,200. The next support target at $12,000 failed to rise to the occasion, instead, allowing the largest cryptocurrency to extend the bearish leg to $11,800.
At the time of writing, BTC/USD bulls are having a hard time building on the support at $11,800 in anticipation of gains past $12,000. The price is doddering at $11,986 amid lock-step trading. Currently holding the price in place (and avoiding acute declines) is the 100 Simple Moving Average (SMA) in the 1-hour range.
Bitcoin has two possible scenarios according to the prevailing technical levels. First, gains above $12,000 would encourage more buying entries, in turn, pushing above the seller congestion at $12,000. Increased confidence in the recovery would pull Bitcoin closer to $12,500.
The second scenario is that an increase in the selling pressure could culminate in a drop below the short term support at $11,800. If this happens, Bitcoin would spiral to seek lower support, probably at $11,750. The losses could extend to refresh the levels at $11,500 and $11,250 respectively.
BTC/USD 1-hour chart
To be updated soon!
Meanwhile, both the RSI and the MACD highlight the presence of sellers in the market during the Asian session on Wednesday. The latter is stuck under the mean line (-37.63). A bearish divergence of -11 paints the bearish picture for Bitcoin.
However, the low volume and volatility illustrate that declines would be limited in the near term. Besides, the RSI has held above the oversold region (30) and is pointing slightly upwards to emphasize that buying pressure is also present only that it is not enough to sustain gains above $12,000, at least for now.
Bitcoin Intraday Levels
Spot rate: $11,984
Relative change: 31.80
Percentage change: 0.27%
Trend: Short term bearish bias