Bitcoin prices have been trading in a range. Price action on the BTCUSD has found it hard to get above 12,000; it has also not made up its mind on whether to head below 11,000. Well, today, this seems to have been decided as a selloff has the BTCUSD pair, sending it towards key support at 10465.78. Price action has bounced off that area, confirming it as a good barrier to selling.
This is all coming as the US Dollar’s strength picked up steam on Thursday, crushing several risk-friendly or alternative assets. Bitcoin prices have re-entered the previous descending channel from which it appeared to have emerged from with the bullish break of Sunday. This break met resistance at the previously identified supply zone (link), identified in a previous analysis piece.
Technical Outlook for BTCUSD
With price firmly in the channel, there are two possibilities. The first is that there could be a downside break of the channel’s lower border, which intersects today’s support at 10456.78. This opens the door towards the
10290.44 support (a weak support level), with 9939.77 serving as a more substantive downside barrier. 9427.71 and 9100.31 are also potential downside targets, as selloffs on the BTCUSD pair have been known to be very aggressive.
Conversely, buyers would need to see a break of Bitcoin price above the 10930.82 resistance, which also hugs the channel’s return line very closely. This would allow for another attempt at the 12000 supply zone which has so far resisted all attempts to push towards highs last seen in July 2019. If this area gives way to buying pressure, then 12824.54 becomes a logical upside target.
BTCUSD Daily Chart