Bitcoin Falls Into a Strong Decline Following ‘Double Top’ Emergence

Bitcoin experienced a sharp correction today after failing to reclaim the $12k psychological resistance yesterday.

About $14 billion have been withdrawn from the market in the last few hours after a double top appeared on the 4-hour chart. Bitcoin touched the $12k area yesterday and on the 2nd of August.

At press time, Bitcoin is trading around $11,350, after falling as low as $11,132, which is a $900 drop from yesterday’s high.

Bitcoin is now in a critical position and has to defend its prevailing bullish trend above the $11,000 resistance.

Key Levels to Watch

The aforementioned support is an important level for bulls to support in the near-term. A break below that line could accelerate the decline and turn the trend bearish. If this fall should occur, support can be found in the $10,800-500 region, which could immediately slow the decline.

As shown in the chart above, our previous rising wedge has been broken to the downside as projected in our last analysis.

The $12,000 resistance remains the key target for bulls to break if they recover from this emerging downtrend.

The MACD, which has a clear depiction of the brewing downtrend, is showing that a slowdown of the bearish momentum might be forthcoming as we are now nearing oversold conditions.

Meanwhile, the 100-day Moving Average ($11,350)—which is where the price is currently at—will serve as an immediate buffer against further declines.

That said, this might just be a short-term correction following the double top formation and we could see BTC her back on track.

Total Market Cap: $346.1 billion

Bitcoin Market Cap: $209 billion

BTC Dominance Index: 60.4%

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