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.

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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