- 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.
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.
Bitcoin Intraday Levels
Spot rate: $11,364
Relative change: 27.41
Percentage change: -0.29%
Trend: Bearish bias
Volatility: Low