Bitcoin Hovers Above $11,600, Faces Rejection at $11,800 High

Yesterday, Bitcoin bulls failed to clear the $11,500 to $11,700 resistance zone as BTC was repelled. Soon after failing to break the $12,400 resistance, Bitcoin dropped to $11,200 and resumed consolidation between $11,200 and $11,800.

For the past week, buyers have made three attempts to break the $11,800 resistance. After each attempt, BTC will retrace to $11,500 for further upside momentum. 

Today, the king coin has retraced and it is approaching the $11,600 support. On August 10, BTC rebounded above $11,600 support as the $11,800 resistance was broken. However, buyers were unable to push BTC above the $12,000 resistance. Today, if the king coin made a repeat of the August 10 price action; it will rally above $11,800 and retest the overhead resistance. Meanwhile, the upside momentum will continue as long as price is sustained above $11,400. Nonetheless, the coin may encounter bearish consequences if it fails to breach the $12,000 overhead resistance. Either BTC falls to the previous low, or Bitcoin will be compelled to a range-bound movement for weeks.

Bitcoin indicator reading 

BTC price is above the EMAs. This suggests that Bitcoin is likely to rise into the previous highs. In the meantime, it is falling after rejection from $11,800. The king coin is at level 54 of the RSI period 14. It is in the uptrend zone and above the centerline 50.

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7,000, $6,000, $5,000  

What is the next direction for BTC/USD?

The current uptrend is intact as the price continues to fluctuate above 11,500. Today, BTC is still struggling to clear the $11,500 to $11,800 resistance. Once it is cleared the next target will be $12,000 resistance. Above the 12,000 resistance, price movement is likely to be accelerated to retest or break the $12,400 high. Bitcoin will eventually hit the $14,500 target price

Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.