Bitcoin market overview: BTC/USD freefalls towards $12,000 amid heightened volatility

The cryptocurrency market is back to the high volatility levels following this week’s recovery from the 100 Simple Moving Average (SMA). The recovery comes after several days of consolidation above $11,000.

The buyers pulled Bitcoin higher above $12,000 during the Asian trading session on Tuesday. Further gains brought $13,000 in focus once again but BTC/USD formed a high at $12,825 before the momentum stalled.

In other news, a huge Bitcoin sell order on Binance has been linked to the plunge in BTC price from the intraday high to the intraday low at $12,112. The sell order of 7,350 BTC valued at $100 million might have caught traders by surprise leading to the drop in price.

A slight correction has since occurred and Bitcoin is exchanging hands at $12,350. However, the price is stuck between the moving average support and resistance with the 100 Simple Moving Average (SMA) 1-h offering immediate support and the 50 SMA limiting the gains at $12,537.

Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) shows a stronger building bullish momentum. The immediate resistance lies at $12,400, but a break above the supply zone at $12,800 will pave the way for gains past $13,000.

BTC/USD 1-h chart