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Bitcoin Takes a Nosedive as the $12,000 Resistance Holds

 
Bitcoin Takes a Nosedive as the $12,000 Resistance Holds
Breaking News / Bitcoin / BTCUSD
  • After Bitcoin took another aim at the $12,000 resistance barrier on August 11th, it seems like investors became overwhelmingly bullish.
  • Such a sense of “extreme greed” in the market was evident, especially on some of the most popular social media networks among crypto enthusiasts.

After Bitcoin took another aim at the $12,000 resistance barrier on August 11th, it seems like investors became overwhelmingly bullish. Such a sense of “extreme greed” in the market was evident, especially on some of the most popular social media networks among crypto enthusiasts. With so many long orders piling up across multiple exchanges, it was just a matter of time before BTC disappointed investors. 

Indeed, the bears appear to have stepped into the market only two hours after the daily open. The increase in selling pressure by these market participants was followed by a spike in margin calls of those overleveraged long positions across the board. As a result, the flagship cryptocurrency entered a downtrend that saw its price plunge by 6.84% to a low of $11,127 by 21:00 UTC.

Although Bitcoin went through a steady decline throughout Tuesday, August 11th, a significant number of buy orders were filled below the $11,200 mark. The jump in demand was important enough to allow prices to rebound a few hours before the day came to an end. By 23:30 UTC, the pioneer cryptocurrency had surged over 2.70% from the intraday low. 

Many investors seem to have taken advantage of the rebound to realize some profits. Thus, the last 30 minutes of the daily trading session were also bearish. Bitcoin was able to close August 11th at $11,392.64, providing investors with a negative daily return of 4.24%. 

Ethereum Breaks Below Key Support Level 

Many Ethereum holders were also fixated on the idea that prices were going to continue trending up. The launch of the Medalla testnet and the boom in the DeFi sector blinded most crypto enthusiasts about all the signals that indicated that ETH was sitting in overbought territory. Those who did not take the necessary measures to protect themselves against adverse market conditions were the most affected by Tuesday, August 11th, price action. 

Ethereum kicked off the day on a good posture. Its price began to climb from a daily open of $395.83 towards the overhead resistance marked by the $400 level. However, this price hurdle once again rejected the smart contracts giant from achieving its upside potential, triggering a steep correction that was seen throughout the day.  

The rejection from this hurdle did not go unnoticed. Sell orders started rising exponentially, which fueled the downward trend Ether had entered. By 20:30 UTC, the second-largest cryptocurrency by market cap had taken a 7.97% nosedive to hit an intraday low of $367. But this support level was met with some buy orders that partially allowed prices to recover as the day was coming to an end. 

Ethereum attempted to regain the $380 resistance as support a few minutes before the daily close. Nonetheless, this barrier was able to reject it, and ETH closed the day at $379.34. Due to the downward trend that Ether went through on August 11th, it gave investors a negative daily return of 4.17%. 

Key Support Levels to Watch Out For

On August 11th, Bitcoin and Ethereum were rejected by some of the most pivotal resistance barriers seen throughout the month. Some argue that such a pullback was needed to allow sidelined investors to get back into the market. The reason for this thesis is that a new capital influx is always crucial to propel prices higher. 

Given the current outlook, BTC must hold above its underlying support level that sits at $11,400 to avoid falling further. Meanwhile, if ETH remains trading above $380, it will likely jeopardize any bearish outlooks. Failing to stay above these critical price hurdles may translate into lower prices with Bitcoin aiming for $10,500 and Ethereum for $300. 

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