The avalanche of selling pressure appears to have found anchorage at the formidable support areas between $9,400 and $9,600. After Bitcoin price retreated from $11,000, the bears continued to force the price past critical levels. The struggle to defend the $10,000 support area this week failed incredibly. And sellers ravaged through the support and extended the losses towards $9,500.
- $10,000 milestone in rear-view mirror: Bitcoin now focusing on $11,000
- Bitcoin breaks the painful downtrend to resurface above $10,000.
Meanwhile, the recovery that occurred following yesterday’s support broke the painful downtrend. BTC smashed through the 50 Simple Moving Average (SMA) 1-hour chart as well as the critical $10,000. Bitcoin tried and failed to conquer the resistance at the 100 SMA 1-hour chart. However, a break has just occurred above $10,100.
BTC/USD 1-hour chart
Technically, Bitcoin has an immense distribution of support areas. Which means, there is a high chance that Bitcoin will thrust past the critical $11,200 resistance in the coming sessions. The ability to sustain the tremendous gains on Thursday relies on the prevailing technical levels.
For instance, the Moving Average Convergence Divergence (MACD) crossed into the positive region during the Asian sessions today. The current bullish divergence persuades the buyers to increase their positions. Another key signal upward correction is to see the 50 SMA close the gap towards the 50 SMA.
As far as support is concerned, $10,000 is not reliable. Therefore, it essential that the bulls pull Bitcoin above $11,000. On the downside, if a reversal inches through $10,000, then $9,600 – $9,400 is a rock-solid support area.
Bitcoin Key Technical Levels
MACD 1-hour chart: Bullish divergence in the positive signals continued to surge towards $11,000.
100 SMA 1-h: Trading above this level signals stronger momentum.
Support Areas: $10,000, $9,800 and $9,400 – $9,600.
Hurdles: $10,200, $10,600 and $11,000.
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.