- Bitcoin plunged by more than $1,500 after forming a new yearly high
- BTC needs to break over $11,500 and the 100 SMA to start a fresh rally
- Bitcoin bulls need to prevent further downtrends blow the $11k mark for upside move
Bitcoin News Today – The price of Bitcoin recently plunged by more than $1,500 from the high of $12,115 against the US dollar. Bitcoin (BTC) is presently consolidating over the $11k mark and it needs to break over the 100 hourly simple moving average to start a fresh rally.
Bitcoin Shreds 1,200 after Hitting a New Year-to-Date High
The world’s largest digital currency by market cap recently experienced strong bullish traction over the $11k and $11,500 marks against the USD. Bitcoin even surged higher, broke over the $12k mark, and tested a new yearly high of $12,100. This is the highest level the digital currency has tested in about a year.
The digital currency formed a high close to the $12,115 mark before it started correcting lower. Bitcoin started a downtrend and plunged by more than $1,500. It broke several major supports close to the $11,500 and $11k marks. The digital currency also tested the $10,850 support mark, but the bulls managed to hold gains over the key $10,500 support mark. It continued its downtrend and formed a low at $10,591 and it is currently correcting higher.
Bitcoin (BTC) Price Today – BTC / USD
On its way up, it broke over the $11k hurdle point, including the 23.6 percent Fibonacci retracement level of the previous swing from the high of $12,115 to the low of $10,591. Nevertheless, the digital currency seems to be having issues breaking over the $11,200 and $11,250 hurdle points.
The 100 hourly simple moving average is situated close to the $11,300 mark to prevent further upside move. There is also a formation of a major contracting triangle with a hurdle close to the $11,200 level on the hourly chart of the BTC/USD trading pair. Bitcoin needs to break over the 100 hourly simple moving average and the triangle hurdle to start a fresh rally.
On the upside, the next key hurdle is close to the $11,450 and $11,500 marks. It is close to the 50 percent Fibonacci retracement level of the previous swing from the high of $12,115 to the low of $10,591. A break over the $11,500 mark would likely pave the way for more moves into the bullish zone.
Can the Bulls Prevent Further Declines?
Bitcoin broke several key hurdles on its way down, and it is a bit difficult to tell if the digital currency would continue its downward correction in the near term. The triangle support is close to the $11k level, below that level Bitcoin might retest the $10,850 support mark. However, on the downside, the major support for the digital currency is close to the $10,600 and $10,500 marks, below which the bears are likely to aim towards the $10k mark.