Bitcoin (BTC) down 15%: $12000 is a key level

11 Jul, 2019 | Updated: 11 Jul, 2019
by Lourens Pepler
Price Analysis
Bitcoin (BTC) down 15%: $12000 is a key level

$BTC is down 15% after hitting tough resistance at $13200. Currently sitting at $11500, Bitcoin looks like it can go down even further with momentum showing bearish signs. Can Bitcoin climb back above $12000 to and continue its rise? This is the BTC analysis for 11 July 2019.

Highlights:

- RSI downtrend

- $12000 resistance level

- Support at $11000

Starting with a 15min chart we can see that momentum has formed a downtrend on RSI. Plotting a downtrend on most of the highs lays out possible future resistance for us to watch during the decline.

With RSI currently sitting against the trendline, and is also at 50 RSI, it could indicate that price will have trouble going higher. As we know during a downtrend, 50 RSI acts as resistance for momentum.

BTC/USD chart provided by Tradingview

Although price might have trouble reaching higher, it is still possible for it to move outside of this downtrend. With RSI already forming some type of divergence - a lower low on price, but a higher low on RSI - could indicate that BTC can push back up to $12000 as it tries to retrace a bit from this dip. It is also possible that BTC might see another small dip towards $11000 before it pushed back up to test resistance.

BTC/USD chart provided by Tradingview

If RSI manages to reach above this downtrend, it will be a sign that price is starting to get overextended again and that the next dip might be close. If BTC manages to break past $12000 then we can surely expect it continue with its run, but a failure to break $12000 could lead to either sideways action or more downside.

BTC/USD chart provided by Tradingview

Looking at support on an hourly chart for a possible further decline, we first see $11000. We can see that during this past two weeks that $11000 was initially resistance but soon turned it into support when BTC broke past it with strength. 

Lastly, we have the psychological price point at $10000. Now we have not seen this price be shown as either strong resistance or strong support just yet since BTC broke past it as resistance, and only briefly tested it as support at the start of July. 

BTC/USD chart provided by Tradingview

Whether we remain bullish and continue to new highs depends on BTC breaking past $12k or not. With momentum still showing bearish signs, we believe BTC will see some lower lows today and possibly a retracement to retest $12k. Do you think BTC can continue with its bull run or is a retrace long overdue, and we will possibly see BTC below $10k again? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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