Bitcoin May Fall Below $11,200 Support as Sellers Threaten to Short

Bitcoin bulls made a positive move and retested the $11,800 resistance on August 24. Buyers failed to push BTC above the resistance level as the king coin suffered another drawdown.

BTC price dropped to $11,100 and moved up to retest the $11,400. The coin is falling again after the retest at the $11,400 resistance. Buyers have to defend the $11,200 support to avoid further depreciation of the coin. 

Since August 1, the crucial support levels of $11,400 and $11, 600 have been holding. The king coin is left with the last crucial support of $11,200. On the downside, a break below $11,200 will sink BTC to the low of $11,000. The bearish momentum can extend to $10,800 and $10,400 if buyers fail to defend the $11,200 support. Nevertheless, if the $11,200 support holds, BTC price will resume upward movement. Meanwhile, the King coin has fallen to $11,300 at the time of writing.

Bitcoin indicator reading 

BTC is at level 48 of the Relative Strength Index period 14. The coin is in the downtrend zone and below the midpoint of the centerline 50. It may continue falling except it rebounds above the current support. The price bar is approaching the 26-day EMA, if it breaks below it, BTC will be in the bearish trend zone.

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?

BTC price is showing a bullish signal as the coin trades above the $11,300 support. The market will reach a low of $11,200 if the price continues to fall. However, the downtrend will continue if the price breaks below $11,200. On the other hand, a fresh uptrend will commence if the $11,200 support holds.

Disclaimer. This analysis and forecast are the personal opinions of the author that are 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.