The fact that the Bitcoin price (BTC) couldn’t get above the $12,000 resistance level meant that a reversal was imminent.
However, the fast pace of the reversal was not anticipated by the markets and surprised many traders. The crucial support zone of USD 11,100 did not provide support and led to the current drop to the USD 10,500 region.
The price of Bitcoin, the shares and gold all plummeted at the same time, what can we expect now?
Bitcoin’s price falls in line with the weakness of the stock market
Not only was the price of Bitcoin Profit weak today, but the U.S. stock market is also experiencing a massive sell-off.
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The Bitcoin daily chart shows a clear rejection of the $12,000 zone, after which there was a sharp drop. Such a drop was not unexpected, given the rejection of the USD 12,000. However, looking closer we’ll determine if the accelerated drop to the USD 10,500 was a result within the possibilities.
The short time frames show a clear break in the support area between USD 11,100 and USD 11,300 and the blue frames show that the support has been tested several times.
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The more a support level is tested, the weaker it becomes and, after the rejection of the USD 11,400 seen on September 2nd, re-testing the support zone at USD 11,100 could guarantee support.
The failure caused the price to fall towards the lower support zones, which can be found between USD 10,400 and USD 10,600. Given the importance of the fall and its accelerated pace, a recovery rally is among the short term options.