With the price of Bitcoin (BTC) unable to cross the $ 12,000 resistance level, the rebound was unsurprising. In the past few days, BTC / USD has dropped to $ 11,400, a retracement of almost 10%.

Meanwhile, gold, silver and other commodities are also correcting themselves due to a slight recovery in the DXY or US dollar index.

Additionally, some heavy duty engines like Chainlink (LINK) and Tezos (XTZ) have also shown significant corrections in the past few days. Could this be a moment to buy the dip or are there any more reviews coming? Let’s examine the graphs.

I refused $ 11,800 bitcoin after going out of range
Bitcoin price failed to force a breakout above the USD 12,000 resistance level, causing it to slide back into the range.

As discussed in the previous article, the $ 12,000 area was critical to maintaining additional upward momentum. This support has not been sustained, which means a possible downturn.

Immediately after falling below $ 12,000, Bitcoin slid towards the support zone at $ 11,600. That $ 11,600 level resulted in a slight rebound towards $ 11,800. As the graph shows, the USD 11,800 area has been confirmed as the new resistance level.

Such a support / resistance reversal generally means more downside as buyers are not strong enough to push the price above this resistance level. Given the weakness of this move, further levels of support can be tested below.

That actually happened when Bitcoin slipped to its next level of support, the green zone, and the final critical stumbling block from a potentially rapid drop to $ 10,000.

A bearish divergence requires a possible trend reversal. However, it is not a clear bearish divergence unless the market starts making new lows in the daily timeframe.

Given the recent drop at $ 11200–1100, the market needs to stay above the green and recent lows to see further upside in the short term.

If Bitcoin price falls below the green, the next area of ​​support is at $ 9,600-10,000 and more pain is on the horizon for the bulls.

There are many examples of bearish bearish disparities falling over the past few years. One of them is shown in the graphic (April 2019) and is similar to the current price movement.

Here, too, a possible downward divergence was noted in the charts. However, this has not been confirmed as a recent decline in support. Given the unchanged structure (higher lows, higher highs), the market continued to rebound as Bitcoin rose to $ 13,000.

The general conclusion is that the current price movement reminds me a lot of the price movement that the market experienced in April 2019 and that the date can be repeated as long as there is $ 11200-11400 left.

Bitcoin bullish scenario

The bullish scenario depends on the support level of $ 11200 to $ 11400 as mentioned earlier.

As long as this area maintains support and Bitcoin regains the USD 11,800 area as support rather than resistance, another uptrend should be expected.

Other bitcoin targets can then be found at $ 13,000. However, the main resistance area after $ 12,000 is between $ 15,500 and $ 17,000. In other words, when you finally make $ 12,000, the market will get even more bullish than it was before.

A bearish scenario for Bitcoin

Likewise, the USD 11200-11400 support level is important for the bears. If this level is lost in the next week, there will likely be more downward momentum, particularly towards the CME Bitcoin futures gap at USD 9,7000, which is also an important level of support.

Before that happens, however, a potential retest of $ 11,800 to $ 12,000 should come as no surprise. There are two important areas for bulls and bears in this regard.

For bulls, it should hold the $ 11,200-11,400 range, after which the Bitcoin price should break through $ 11800-12000.

For the bears, $ 11,800-12,000 should continue to fail as resistance and $ 11200-11,400 as support.

Source: CoinTelegraph