Bitcoin Slumps After Hitting $12,000 Mark but Larger Uptrend Intact

For the past 48 hours, Bitcoin is consolidating above $11,000 support after a sudden crash. On Sunday, August 2, buyers pushed BTC above $12,000 high.

The king coin encountered a bearish reaction after reaching a high of $12,097. The crypto plunged to a $10,548 low. Immediately, BTC pulled back above $11,000. Buyers are making another attempt to push prices to the previous highs. BTC is being repelled at the $11,400 high as the coin resumed a sideways move below the recent high.

Today, the market is consolidating between $11, 000, and $11,400. Analysts have it that liquidity tends to drop during the weekend as there are few traders in the market. In other words, low volumes are responsible for massive price movement. The recent breakdown enables BTC to find support above the EMAs. Therefore, BTC has another chance to resume a fresh uptrend. A retest at the $12,000 is possible if the price breaks the $11,400 resistance.

Bitcoin indicator reading 

The recent breakdown has pushed to level 66 of the Relative Strength Index period 14. It indicates that the coin is in the bullish trend zone. Yesterday, the price fell above the support line of the ascending channel. It indicates that the market will resume an upward move.

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7, 000, $6, 000, $5,000    

What is the next direction for BTC/USD?

The Bitcoin uptrend is still intact despite the recent breakdown. The market is still holding above $11,000 for the resumption of the uptrend. A correction candle body tested 0.786 Fibonacci retracement level. It indicates that the price will rise to 1.272 Fibonacci extension level. In other words, BTC will rise to retest the $12,000 resistance.

Disclaimer. This analysis and forecast are the personal opinions of the author and not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.