On the downside, the nearest support comes at the 50-daily moving average marginally above the $11,000 handle
Bitcoin price has settled around $11,400 following steep losses witnessed on Wednesday when the leading cryptocurrency was rejected from the $12,000 psychological handle, down to $11,100. The bearish momentum was capped marginally above the 50-daily moving average that continues to act as support since late-July.
Some market observers are citing the rising dollar as a reason behind the abrupt decline in BTCUSD. But the US currency has been in a recovery mode since the start of the week and was climbing higher along with the digital currency in the previous days. In part, a sharp sell-off in the cryptocurrency market was related to the reports that Seoul authorities have raided Bithumb, the largest cryptocurrency exchange in South Korea by trading volume. It is also the ninth-largest crypto exchange by average daily trading volume globally.
There also could be a technical reason behind the recent losses in the BTCUSD pair as investors struggle to make a decisive break above the $12,000 handle despite climb to 2020 highs around $12,500 last month. Now, the immediate resistance for bulls arrives at $11,400-$11,500. A break above this region in the short term is necessary for the digital currency to stay afloat and proceed to recovery.
On the downside, the nearest support comes at the 50-daily moving average marginally above the $11,000 handle. The price may derail this level before buyers reenter the game at more attractive levels. In this scenario, BTCUSD could stage a bounce from the $10,800 area and target the $12,000 barrier again.
In the immediate term, bitcoin could spend some time in hesitation around the current levels before decides on the further direction as the short-term technical indicators are looking neutral including the daily RSI that turned flat after the recent decline.
