Bitcoin Price Forecast: BTC/USD Back To The Drawing Board? Could Retest $11,000 Before Attacking $12,000 Again
- Bitcoin freefalls following a failed attempt at containing gains above $12,000.
- BTC/USD drop towards $11,000 could encourage investors to buy the dip as they look forward to gains above $12,000.
Bitcoin price for some time this week held the fight firm at $12,000. There was an instance on Monday when the largest cryptocurrency by market capitalization soared to weekly highs at $12,084. However, gains could not be sustained towards $12,100. Instead, the price slipped under $12,000.
The failure to hold above $12,000 seems to have energized the sellers in the market who have since then flocked the market in numbers to force Bitcoin below $11,500. Support at $11,800 tried to keep the bearish pressure at bay but BTC/USD lost balance.
At the time of writing, Bitcoin is trading at $10,370 amid an increasing bearish grip. A weekly low has been traded at $11,108, highlighting the extent of the lower leg. The fall could, however, serve the purpose of creating fresh demand for the coin. Investors who had been left out of the rally to $12,000 now have the opportunity to buy low in anticipation of gains targeting $12,200 resistance.
Related reading: Are Bitcoin And Gold Headed to The Worst Drop Ever? Covid19 Vaccine, Tax cut & More
BTC/USD 4-hour chart
From a technical perspective, the bearish grip would continue to grip the market in the near term. The RSI is holding the position closer to the oversold region. In addition, the MACD has dipped below the midline. The indicator features a visible bearish divergence, further reinforcing the selling influence over the price.
At the moment, the price is holding marginally below the 100 SMA in the 4-hour timeframe. Bitcoin needs a boost at this level in order to take down the short term resistance at $11,400. Gains above $11,500 and the 50 SMA at $11,622 would most likely encourage more buyers to join the market as confidence in the recovery mounts. For now, holding above the 100 SMA is key to establishing support and balance before attempts are made to clear the hurdles towards $12,000.
Read more: Will Bitcoin [BTC] Price Hit $500,000 By 2028? Crypto Guru Bobby Lee Stands Firm By His Predictions
Bitcoin Intraday Levels
Spot rate: $11,364
Relative change: 27.41
Percentage change: -0.29%
Trend: Bearish bias
Volatility: Low
BTC/USD drop towards $11,000 could encourage investors to buy the dip as they look forward to gains above $12,000.
To get the daily price analysis, Follow us on TradingView
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
Published at Wed, 12 Aug 2020 02:06:43 +0000
![Why Bitcoin [BTC] Price Will Rally Above $20,000 By End Of 2020?](https://thebitcoinstreetjournal.com/storage/2020/05/80xo44.png "Why Bitcoin [BTC] Price Will Rally Above $20,000 By End Of 2020?")
Share on Facebook
Share on Twitter
Share on Linkedin
Share on Telegram