- Bitcoin failed attempted to break above $11,500 hurdle give way to bears as BTC tests $11,200.
- The current technical picture has a bearish bias with the RSI and the MACD heading south.
Bitcoin grinding south after an attempt to break above $11,500 failed. A sharp correction butchered its way through the support at $11,300. At the time of writing Bitcoin is trading at $11,230 following a minor recovery from the support at $11,200.
This correction is happening amid heightened interest and scrutiny in Facebook’s Libra cryptocurrency. The social media giant is expected to release the crypto within the first half the year. While experts are refraining from connecting the recent surge in Bitcoin price to Libra, the introduction of Libra is likely to be encouraging institutional client interest in cryptos. In other words, Facebook’s Libra could be validating the digital asset space to the conservative traditional asset market lot.
BTC/USD 15-mins chart
Chart source: Tradingview
Looking at the BTC/USD chart, the ‘king’ of cryptocurrencies has been forming a higher high and a higher low pattern since the surged that commenced over the weekend. A forming rising wedge pattern is approaching breakdown. It is vital that $11,200 support holds ground, otherwise, Bitcoin risks breaking down towards $10,800 support.
The current technical picture has a bearish bias. Besides, the path with the least resistance is downwards. Take, for instance, the Relative Strength Index (RSI) has broken under the trendline connecting the lower swings from the weekend trading sessions. While the RSI is moving horizontally at 40, the upward correction will be an uphill task.
The trends of the Moving Average Convergence Divergence (MACD) suggest the change of control from the bulls to bears.