Bitcoin Hovers above $11,700, Larger Uptrend Intact

About 48 hours ago, Bitcoin breached the $12,000 overhead resistance and rallied to $12,490. Within the same period, the king coin faced rejection at the recent high.

BTC has continued to fall after the rejection at $12,400. Today, the crypto has fallen to $11,600 but price corrected upward above $11,700. The bottom line is that price has fallen to a critical level. 

The king coin will resume a fresh uptrend if the $11,700 support holds. Conversely, if buyers fail to sustain the price above $11,700, BTC will continue its downward move. The market will slide down to $11,400 or $11,200. In the meantime, buyers and sellers are struggling for price possession above $11,700 support

Bitcoin indicator reading 

Since July 23, BTC has been confined to trading in the overprice region of the market. It is now below 80% range of the daily stochastic. It indicates that the coin has bearish momentum. As the coin falls, the price bars are still above the EMAs. The crypto will rise as long as the price is sustained 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?

The king coin is on a downward move. According to the Fibonacci tool, the price fall is likely to continue. In the August 1 uptrend, BTC was repelled at the $12,000 resistance. The retracement candle body tested the 78.6% Fibonacci retracement level.

This informs us that the market will rise and reach a high of 1.272 Fibonacci extension level or the high of $12,500. Nonetheless, at the 1.272 Fibonacci extension level the market usually reverses. However, the market will reverse and return to 78.6 Fibonacci retracement level where it originated. 

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.