Bitcoin Must Defeat $12,100 Mark to Avoid Sharp Drop

Bitcoin Must Defeat $12,100 Mark to Avoid Sharp Drop

Bitcoin continues to maintain its position just below the $12K mark, following a recent consolidation around the $11,600-800 level.

However, we saw BTC attempt to break the $12,100 (2020 high) again yesterday. Despite the bull-run, Bitcoin couldn’t hold this level for more than a few hours before dipping sharply to the $11,500 level. At press time, Bitcoin is trading around the $11,800 level.

The positive side is Bitcoin has now formed a steady rising wedge, compared to yesterday’s consolidation wedge. On the negative side, however, another failed attempt to break the $12,100 level would create a ‘double top’ which could precipitate a sharp drop.

Also, the benchmark cryptocurrency has had no luck in defeating the top of our ascending channel since it touched that line at the start of this month.

BTCUSD – 4-Hour Chart

Key Levels to Watch

Immediate resistance can be found at the $12K level (top of our ascending channel and psychological resistance), followed by the $12,100 (2020 high).

Subsequently, resistance can be spotted around $12,300 (August 2019 high), $12,500, and $12,900.

On the flip side, our immediate support can now be seen at the $11,500 mark, followed by the 11,200, and $11,000 psychological line. Another powerful support can be seen below at the strong resistance-turned-support $10,500 mark.

Total Market Cap: $361.6 billion

Bitcoin Market Cap: $218 billion

BTC Dominance Index: 60.3%

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