Earlier this week, the price of Bitcoin (BTC) rose to $ 11,725 following news last week that Square bought $ 4,709 of Bitcoin, but the price has fallen sideways since then.
Multiple rejections close to $ 11,500 and recent news that OKEx has ended all withdrawals while the CEO is “cooperating” with a survey by Chinese authorities also affect investor sentiment and bitcoin prices.
A wave of negative news pushed most altcoins prices into negative territory and canceled out the recently discovered bullish momentum.
The daily chart indicates that a loss of $ 11200 may open the door for that price to try again at the $ 11100 level, which is the level in the VPVR gap and is likely to lead to a further decline to $ 10900.
According to Cointelegraph Michael Van de Pope, these are:
“The big support of $ 11,000 is currently a mandatory level for renewed bullish momentum, which may struggle to clear current levels as the updated coronavirus barriers scare investors.”
Van de Poppe suggests that if Bitcoin loses $ 11K support, there is a possibility that the price drops below $ 10,000 to the $ 200-MA at $ 9,750, which is close to breaking CME.
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While the current price action is disappointing for bulls looking to retest $ 12,000, an overview shows that there are several factors at play in Bitcoin’s favor.
The recent BTC distribution from MicroStrategy, Square and Stone Ridge is positive, especially given the current economic uncertainty due to the COVID-19 pandemic.
Additionally, trading volumes are on the rise again on many BTC futures exchanges, and Cointelegraph reported Friday that the Baked Bitcoin Exchange has set a new record for BTC delivery.
Bitcoin also largely ignored most of the negative news over the past two months and remained above the $ 10,000 level as buyers showed continued interest in buying near this level.
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It’s also worth noting that it was only 1.5 weeks since Bitcoin broke out of the 24-day squeeze, followed by a recent breakout of $ 11,750.
After the bullish rally, the price tested the $ 11,200 level as support, but fell deeper to the 20 SMA to test $ 11,000, as the support was not unusual. Even a drop to $ 10,650 near the 100 SMA will be just a fresh test of the downtrend line from the 2020 high of $ 12,467.
In the short term, it appears likely that the bitcoin price is trading in the $ 11,400 – $ 9,700 range, which could be a swing trading paradise.