Bitcoin failed to surpass the $11,000 resistance and started a fresh decline against the US Dollar. BTC is now well below the 100 SMA (H4) and it could decline further towards $10,000.

• Bitcoin failed once again to clear the $10,950 and $11,000 resistance levels.
• The price is now trading well below $10,750 and the 100 simple moving average (4-hours).
• There is a key connecting bullish trend line forming with support near $10,330 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
• The pair could correct higher, but upsides are likely to remain capped below $10,800 and the 100 SMA (H4).

Bitcoin Turns Red

This past week, bitcoin made another attempt to surpass the $10,950 and $11,000 resistance levels against the US Dollar. However, the bulls failed to gain strength, resulting in a sharp decline from the $10,940 swing high.

The price broke many important supports near $10,800 and $10,750 to move into a short-term bearish zone. There was also a break below the 50% Fib retracement level of the upward move from the $10,138 swing low to $10,950 high.

Bitcoin is now trading well below $10,750 and the 100 simple moving average (4-hours). The first major support on the downside is near the $10,350 zone. There is also a key connecting bullish trend line forming with support near $10,330 on the 4-hours chart of the BTC/USD pair.

Bitcoin price dives below $10,800. Source: TradingView.com

The trend line is close to the 76.4% Fib retracement level of the upward move from the $10,138 swing low to $10,950 high. If there is a downside break below the trend line support and $10,300, there is a risk of more losses.

The next major support is near the $10,130 level, below which the bears might even aim a larger decline below the $10,000 support level in the near term.

Upsides to be Capped in BTC?

If bitcoin starts an upside correction, it could face sellers near $10,700. The first major resistance is still near the $10,800 level and the 100 simple moving average (4-hours).

The main resistance is still near the $10,950 and $11,000 levels. A close above the $11,000 resistance is must for a sustained upward move in the coming days.

Technical indicators

4 hours MACD – The MACD for BTC/USD is showing negative signs in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Level – $10,350

Major Resistance Level – $10,800