On August 11th, gold and silver prices showed some corrective moves, which were also observed in the cryptocurrency market. Bitcoin (BTC) fell $ 700 from $ 11,800 to $ 11,100 in one day, which is a short-term correction.
However, has the general bullish momentum gone away from the crypto markets? Given the strong waves from Chainlink (LINK) and Tezos (XTZ), the bull market still appears to be burning.
Bitcoin offers significant support at $ 11,200
If Bitcoin is to maintain its bullish momentum, the main support ranges between $ 11100 and $ 11300, as shown in the chart below.
The daily chart shows an important support level in the green box. As long as this level is supported, other dynamics can be expected.
However, once the bitcoin price loses the support level at $ 11,100 to $ 11,300, the price is expected to drop significantly towards the $ 10,000 region. The next huge support areas are at $ 9,700-1,000, which is like a CME gap.
Open and closed gaps are often tested before the market continues to recover. In this case, the price accelerated over the weekend, leaving a CME gap between $ 9,650 and $ 9,900.
If the Bitcoin price falls below $ 11,200, the price is expected to continue falling towards these areas where there are many arguments. Not only are there horizontal support levels in this area, but the 100 and 200 day moving averages are approaching these areas in order to provide steady support.
The short term levels to consider are indicated on the chart. On the upside, clear resistance levels are structured at $ 11.700 to $ 11,800 and $ 11,950 to $ 12,050.
In the short term, the trend changed as the price reached lower highs. Lower highs often indicate more downward momentum which will make breaking these resistance levels crucial if Bitcoin’s price is to continue rallying towards $ 15,000.
However, it is also important to keep support at $ 11,100 and $ 11,250. If this level does not support the next test, a possible drop towards the $ 10800 or $ 10,000 level is expected.
A bullish scenario is defined in a simple way. Initially, a rejection is expected at $ 11,700, after which a test of $ 11,400 should provide support.
If this scenario proves itself, then there’s likely to be a break above $ 12,000 on the table. What are the Bitcoin targets beyond this level?
Probably $ 15,000 as the area between $ 11,800 and $ 12,000 will be the last formidable level of resistance before the bull market heats up.
The bearish scenario is surrounded by the same critical levels as denying $ 11,700 would trigger a significant drop.
However, in a downside scenario, the $ 11400 level does not provide any support. Such a drop could test the $ 11200 level again. The more often the level is tested, the weaker it becomes.
If $ 11,200 does not provide support in the next test, the drop to $ 10,000 is on the table.