- Bitcoin does not have as many strong support areas as there as resistance zones.
- Continued downward movements could see Bitcoin retesting $9,913 support.
Bitcoin staged a recovery from the support formed slightly above $9,800 yesterday. The uptrend continued to break barriers to the upside, finally jumping above $11,000. Lack of enough buying power with increasing selling pressure pushed Bitcoin right back. Various key support levels have caved in including $10,800 - $10,600 as well as $10,400.
Trading at $10,462, the confluence detector places the initial resistance at $10,500. Correction above this level will remain largely undeterred until BTC/USD hits the next key hurdle at $10,617 (seller congestion zone). A couple of indicator form this confluence: Previous Low 4-h and the 38.2% Fib retracement level 1-D. Other key resistance zones rest at $10,734, $10,793 and $10,852.
On the flip side, Bitcoin does not have as many strong support areas (buyer congestion zones) as there as resistance zones (seller congestion areas). The initial weak support is seen at $10,324 highlighted by the 61.8% Fib level –D. The next support target is at $10,141 while the strongest support area is seen at $9,913 and $9,796.
Therefore, it is vital that that bulls keep the price above $10,500 and even push towards $11,000. Otherwise, downward movements could see Bitcoinretesting $9,913 support.