Bitcoin Dropped Below $11,500 – Is This an End of the Bullish Trend?


Bitcoin has dived into correction after hitting August 2019’s key level. Bitcoin dropped below $11,500 psychological area. Is this an end of the impulsive bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s BTC/USD Technical Analysis.

August 12, 2020, | AtoZ Markets Bitcoin dropped below today against the US Dollar during the Asian session. BTC has struggling to break above $12,000 key resistance area and currently correcting lower. Bitcoin’s daily chart suggests that the price may extend the correction towards the $10,500 support zone.  Bitcoin is currently trading around $11,450 area and trying to reject $11,500 resistance level. The price broke below the dynamic level of 20 EMA on the intraday chart. As per the current price action, BTC may face strong support around $11,000 area in the coming days.

Bitcoin Dropped Below After Hitting Multi-Year’s High

BTC is currently residing near $11,450 area and trying to decline. Moreover, after bouncing from $11,000 support area last week, the bulls pushed the price upside impulsively and reached $12,000 key level.

Bitcoin Dropped Below

Image: Bitcoin 4 Hour Chart

According to the 4-hour chart, Bitcoin dropped below $11,500 and currently trading around $11,450 area. As per the current price action, if the price can have a 4-hour bearish candle close below $11,500 area, the bears may sustain the bearish pressure towards $11,000 area in the coming days. Alternatively, if the price break above $11,500 area with an impulsive bullish candle, the bulls may regain momentum and recover higher towards $12,000 area again in the process.

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong resistance to push the price downward. The Kijun line and the Tenkan line may work as a confluence of the dynamic level. In contrast, the bulls may regain momentum if the price can break above the dynamic level in the days ahead.

BTC May Revert Back to the Mean

According to the daily chart, Bitcoin dropped below after reaching $12,000 psychological level. As per the current prices action, after rejecting $12,000 area, the price had a daily bearish engulfing bar close below $11,500. Besides, the price already retraced 50 per cent of the bearish engulfing bar.

Bitcoin Dropped Below

Image: Bitcoin Daily Chart

So, if the price can have a daily bearish close below $11,500 area, the bears may sustain the bearish pressure towards $11,000 area as a first target. The second target will be $10,500 area if the price can break below $11,000 in the coming days. In contrast, if the price can break above $11,500 area with an impulsive bullish candle close, the bulls may regain momentum and recover higher towards $12,000 as a first target. The second target will be $12,500 if the price breaks above $12,000 area in the days ahead.

Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may act as a strong support to push the price upward. Also, the MACD lines are currently residing above 0.00 level and may have a bearish intersection. Along with, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping down. It indicates that bears may continue the bearish momentum further in the coming days.

To conclude, after gaining a massive amount of pips, BTC maybe correcting lower. An impulsive daily close will help to identify the definite momentum in the days ahead. 

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