The price of Bitcoin (BTC) has suddenly dropped from $ 11823 to $ 11102 in the last 48 hours. While the digital asset remains bullish on the macro level, there appear to be three main factors behind the decline.
According to the Queen Telegraph, it is likely that the presence of a vital resistance level at $ 12,000, and many whales taking profits and retesting a major support area may have spurred the decline.
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Bitcoin is struggling in the resistance zone between $ 11,800 and $ 12,500
Since the first week of August, Bitcoin has attempted to break through the resistance range between $ 11,800 and $ 12,500. Each of the five attempts to breach the levels of $ 12,500, $ 12,000 and $ 11,800 led to a sharp decline.
One possible reason that the $ 12,000 level was a difficult resistance area for buyers is that it was a historically relevant resistance area. After February 2018 and July 2019, this is the third time in two years that Bitcoin has tested this resistance zone.
a trader under a pseudonym known as DonAlt said that while Bitcoin could recover, the bears have an easier way to go.
He explained: The coin may find a temporary relief here but it still looks very heavy. The bears now have an easier way to go now than they did before, if the price lost $ 11760 on a close basis, it is likely that Bitcoin would rise. Until that happens, I will assume the pair will go down.
The CME gap should be taken into account
Since Bitcoin's price crossed $ 10,000 on July 26, it has remained above the support range between $ 10,000 and $ 10,500.
Given that the $ 10,000 level has become a major support level for Bitcoin, the possibility of a major retest of support exists. Chain analyst Willie Wu also noted that a drop below $ 10,900 could close the Chicago Mercantile Exchange's gap, which is at $ 9,700.
where Wu said: The channel we're on is now being tested. And I don't think it will continue. I don't usually set price targets, as the trend on TB ...
