Bitcoin Suffers Rejection as Buyers Fail to Sustain Upside Momentum above $12k

Yesterday, BTC rebounded above $11,800 support to break the $12,000 overhead resistance. The recent rebound was not sufficient to break the resistance as price retraced after hitting the high of $12,060.

Buyers’ failure to sustain the upside momentum will attract bearish consequences. The king coin has resumed a downward move. When BTC falls there are crucial support levels where price finds support. The king coin has fallen above $11,700 at the time of writing. 

The coin will resume upside momentum if the current support holds. Otherwise, the selling pressure will extend to the crucial support levels of $11,600, $11,400, and $11,200. The crypto will find support above one of these support levels to resume a fresh uptrend. Nonetheless, if the bears break below $11,200 support, BTC is likely to decline to $11,000 or $10,400. This will portend negatively for the coin. In the meantime, the coin has fallen but it is hovering above $11,700 support.    

Bitcoin indicator reading 

BTC is above the 40% range of the daily stochastic. It indicates a bullish momentum which is contrary to the price action. If price retraces and finds support above the EMAs, BTC will resume an upward move. The price has retraced and it is hovering above the EMAs.

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?

Bitcoin is falling after facing rejection at the $12,000 overhead resistance. However, the uptrend is intact if the price is sustained above the crucial support levels. According to the Fibonacci tool, a retraced candle body tested the 38.2% Fibonacci retracement level. This is a signal that once the $12,000 overhead resistance is breached, BTC will resume an upward move to the target price above $14,500 or the 2.618 Fibonacci extension level.

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.