- Bitcoin loses almost $1,000 in less than a day following another rejection at $12,000.
- Recovery from $11,155 encounters intense selling pressure under $11,500.
- Price action to $12,000 will not be easy, especially with the strong confluence resistances at $11,565 and $11,684
Bitcoin price lock-step trading in the last week of August culminated in significant gains on September 1. BTC/USD soared above the stubborn resistance at $11,800 and closed the day above $12,000. The move was also reflected in other major cryptocurrencies like Ethereum and Ripple. The former broke several barriers to trade a new yearly high at $489 while Ripple reclaimed the position above $0.30.
Unfortunately, the bullish move was cut short because of little fundamental support. The trading volume was also not enough to contain the gains above $12,000. A reversal followed with Bitcoin losing almost $1,000. The primary support at $11,100 came in handy to stop the declines at $11,155.
Meanwhile, a recovery ensued sending Bitcoin marginally above $11,400. However, intense selling pressure below $11,500 is not giving the bulls a chance to stage action towards the psychological $12,000.
It is apparent that recovery will not come as highlighted by various technical levels including the RSI and the MACD. Moreover, the gap between the 50 SMA and the 200 SMA in the 1-hour range is narrowing as a signal for a strengthening bearish grip. For now, the path of least resistance is downwards; a return to $11,100 support is likely before BTC restarts the journey back to $12,000.
BTC/USD 1-hour chart
Bitcoin confluence levels
Resistance one: $11,447 – As highlighted by the previous high 15-minutes, the Bollinger Band 15-minutes middle, the SMA five and the Bollinger Band 1-hour middle.
Resistance two: $11,565 – Home to the SMA 50 4-hour, the SMA 200 1-hour, the Fibo 61.8% one-week and the SMA ten one-day.
Resistance three: $11,684 – Highlighted by the Bollinger Band 4-hour middle, the Bollinger one-day middle, the SMA 200 15-minutes and the SMA one-hour.
Support one: $11,328 – This the strongest support zone and home to the previous low 1-hour, the previous low 4-hour, the Fibo 23.6% one-day, the Bollinger Band 15-minutes lower and the Fibo 38.2% one-week.
Support two: $11,210 – Highlighted by the pivot point one-week support one, the previous low one-day and the Bollinger Band 1-hour lower curve.
Support three: $11,092 – Hots the SMA 50 one-day and the pivot point one-day support one.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.