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Bitcoin’s Consolidation Continues Following the Recent Drop from Above $12k

BTC/USD

Key Resistance Levels: $12,100, $12,000, $11,800, $11,500

Key Support Levels: $11,100, $11,070, $11,000, $10,550, $10,000, $9,600, $8,800

Following the commencement of the consolidation course on July 21, many key resistance levels were broken, giving rise to more support levels. One resistance level that put up a hard fight against the consolidation is the $11,070 resistance level. This resistance level was tested more than five times before finally succumbing, turning into a crucial support level.

The $10,550 is a short term support level should not be overlooked. This support level, since it been turned to a support level, has not been tested. If the $10,550 support level is tested and broken, that spells trouble for the next support level, the $10,000 support level.

With prices currently trading above $11,000, it will be a nightmare for traders to see Bitcoin drop below $9,000. If it does, the $8,800 long term support level is strong support that may not be broken till it consolidates again. A bet can be placed on the $8,800 because it has not been tested weeks now.

A critical resistance level that is rarely tested got tested at the weekend. The $12,000 resistance level was checked and broken during the weekend. The price of a Bitcoin even surpassed the $12,100 mark, reaching the highest this year.

At the time of writing, the $11,800 level and the $11,500 are still crucial resistance.

Why Consolidate Again?

Traders were excited to see Bitcoin price surpass $12,100 to reach a 2020 all-time high of $12,142 during the weekend. Unfortunately, the joy was short-lived, and the price came crashing down to $11,377. In a matter of minutes, Bitcoin lost 13% of its value, and $1 billion was liquidated. 

Now, Bitcoin is consolidating and rising again from the dipping price of $11,377 to $11,382. At the time of writing, Bitcoin price is $11,382; If the current market sentiments remain the same, traders can expect to see bitcoin back at the top and surpass $12,142.

If the current market sentiment changes, then traders can expect prices to crash as low as $10,000.



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