On August 11 the price of gold and silver showed some corrective movements, the same was observed in the cryptomarket. Bitcoin (BTC) fell $700 from $11,800 to $11,100 in one day, marking a short-term correction.
However, has the overall upward momentum in the cryptomarket gone away? Given the strong waves of Chainlink (LINK) and Tezos (XTZ) today, it seems that the bullish market is still on fire.
Bitcoin has crucial support at $11,200
If Bitcoin wants to maintain an upward momentum, the crucial support is between $11,100-$11,300 as shown in the chart below.
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BTC/USD 1-day chart
The daily chart shows a crucial support level on the green box. As long as that level maintains support, it is likely that more momentum will be expected.
However, once the Bitcoin price loses the support level at $11,100- $11,300, the expectation is that the price will make a significant drop towards the $10,000 area. The next massive support areas are at $9,700- $10,000, which is similar to the CME gap.
Open gaps are tested and closed quite often before the market continues to rise. In this case, the price accelerated over the weekend, through which a CME gap is left open between $9,650-$9,900.
If the price of Bitcoin falls below $11,200, it is likely that the price will continue to fall towards these regions as multiple arguments align. Not only are there horizontal support levels in this area, but the 100- and 200-day moving averages are also approaching these areas to provide constant support.
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What are the short-term levels to consider for Bitcoin?
The short-term levels to be followed are defined in the chart. On the positive side, clear resistance levels are structured at $11,700- $11,800 and $11,950- $12,050.
In the short term, the trend has changed as the price is reaching decreasing highs. In the short term, the trend has changed as the price is reaching decreasing highs. Decreasing highs often indicate greater downward momentum, through which breaking those resistance levels is crucial if the price of Bitcoin is to continue to move towards the $15,000 mark.
However, it’s also crucial to keep support at the $11,100-$11,250 level. If that level isn’t compatible with the next test, a likely drop to the $10,800 or $10,000 level is expected.