Bitcoin bulls are recovering after failing their first attempt to break over $11,000. Despite a promising rally over $10,900, the surging momentum was insufficient to overcome the strong selling pressure at the critical psychological level.
BTC breaking into the overbought region on the 4H RSI will have also contributed to the downward force bearing on the primary crypto’s price.
The 0.382 Fibonacci level at $10,836, which had previously acted as a strong area of resistance, flipped into support and allowed bullish traders to recharge. The 200-EMA line (marked red on the following chart) is also reinforcing this level.
Now, BTC price appears to be rallying again towards the $11K level, but will it be second time lucky for the bulls?
The $11,000 level is the obvious main target for BTC buyers right now as they initiate a new leg from the 0.382 Fibonacci support. If they’re successful in closing above that, then the 0.5 Fibonacci level at $11,150 would be the next likely resistance.
$11,150 has been historically strong support for BTC, particularly on August 12, just after prices collapsed 7.5%. Now that it’s flipped into resistance, it should create a very strong ceiling for bulls to break in the short-term.
Looking above, we also have the $11,400, 0.618 Fibonacci level at $11,464, and the median line (dashed white line) of the main channel (yellow), which should create some friction if the breakout continues.
If prices somehow collapse below the current 0.382 Fibonacci level ($10.8K) and 200 EMA line, then the 50 EMA line (blue) around $10,660 could prop up BTC briefly. From there, the 0.236 Fibonacci level $10,446 beneath would be the next most likely support, followed by the support of the main channel (yellow).
A breakdown to the main channel support would almost certainly reignite fears of filling the CME gap below and a fall back under five figures, as BTC returns to its former range.
Total market capital: $358 billion
Bitcoin market capital: $202 billion
Bitcoin dominance: 56.5%
*Data by Coingecko.
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