Bitcoin Loses Concentration as It Faces Strong Rejection at $12k

Today, BTC retraced to $11,300 after facing rejection at the $12,000 overhead resistance. The king coin is likely to repeat the price action of August 2 where BTC plunged to $10,548.

On August 2, the market fell abruptly and the recovery was also instantaneous. Today, BTC is falling gradually, it is unclear the extent of the downward move. BTC risks downtrend, if the selling pressure exceeds below the $10,400 support. If sellers pushed the coin below$10,400 low, the downtrend will extend to $10,000. This will signal the resumption of the downtrend. Alternatively, if BTC holds in any of the support levels, a fresh uptrend will resume retesting the $12,000 overhead resistance.

Bitcoin indicator reading 

The downward movement is threatening the breaking of the support line. BTC will resume a downtrend if the price breaks below the support line of the ascending channel. The coin has bearish momentum as the price is below the 80% range of the daily stochastic. The market will resume an upward move if the price holds above the support line.    

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 king coin is facing a downward move after the last rejection at the overhead resistance. BTC will resume upward as soon as the price finds support. According to the Fibonacci tool, a red candle body tested the 0.236 retracement level. This retracement level tells us that price will rise and reach level 4.236 extension level or $15,000 high.

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.