Bitcoin failed to surpass the $11,000 resistance and started a fresh decline against the US Dollar. BTC is now well below the 100 SMA (H4) and it could decline further towards $10,000.
- Bitcoin failed once again to clear the $10,950 and $11,000 resistance levels.
- The price is now trading well below $10,750 and the 100 simple moving average (4-hours).
- There is a key connecting bullish trend line forming with support near $10,330 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but upsides are likely to remain capped below $10,800 and the 100 SMA (H4).
Bitcoin Turns Red
This past week, bitcoin made another attempt to surpass the $10,950 and $11,000 resistance levels against the US Dollar. However, the bulls failed to gain strength, resulting in a sharp decline from the $10,940 swing high.
The price broke many important supports near $10,800 and $10,750 to move into a short-term bearish zone. There was also a break below the 50% Fib retracement level of the upward move from the $10,138 swing low to $10,950 high.
Bitcoin is now trading well below $10,750 and the 100 simple moving average (4-hours). The first major support on the downside is near the $10,350 zone. There is also a key connecting bullish trend line forming with support near $10,330 on the 4-hours chart of the BTC/USD pair.
Bitcoin price dives below $10,800. Source: TradingView.com
The trend line is close to the 76.4% Fib retracement level of the upward move from the $10,138 swing low to $10,950 high. If there is a downside break below the trend line support and $10,300, there is a risk of more losses.
he next major support is near the $10,130 level, below which the bears might even aim a larger decline below the $10,000 support level in the near term.
Upsides to be Capped in BTC?
If bitcoin starts an upside correction, it could face sellers near $10,700. The first major resistance is still near the $10,800 level and the 100 simple moving average (4-hours).
The main resistance is still near the $10,950 and $11,000 levels. A close above the $11,000 resistance is a must for a sustained upward move in the coming days.
Technical indicators
4 hours MACD – The MACD for BTC/USD is showing negative signs in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Level – $10,350
Major Resistance Level – $10,800
Author: Aayush Jindal
Read more at: https://www.newsbtc.com/2020/10/04/bitcoin-indicators-suggest-larger-decline/
