- Bitcoin recovery from $11,400 hits a barrier at $11,800 as consolidation takes over.
- Bitcoin bullish case above $12,000 is still intact but depends on a potential breakout from the descending channel.
Bitcoin price plunged farther down during the weekend session, testing support at $11,400. The breakdown was reinforced after short term support at $11,800 failed to hold. In addition, $11,600 did little to halt the losses. Fortunately, a descending channel support came in to rescue the bulls from a would have been devastating slump to $11,000.
A reversal took place almost immediately with Bitcoin bouncing off the channel support at $11,400. Several barriers were pushed into the rearview including $11,600 and $11,700, however, the resistance at $11,800 remained intact.
BTC/USD has retreated under $11,700 at the time of writing and trading at $11,677. Marginally above the market value, the digital asset is facing a seller congestion at the 100 SMA in the hourly range. Moreover, the descending channel resistance is giving he bulls a hard time.
Technically, Bitcoin is nether bullish nor bearish. This is reflected by the MACD’s movement at the mean line (0.00). In other words, consolidation remains the domineering trend in the short term. If bulls defend support at $11,600, it would allow them to gather strength for a lift-up above $12,000. Besides, buyers must be careful not lose their focus on $12,000.
BTC/USD 1-hoiur chart