Bitcoin Follows Through With Intense Sell-Off

Bitcoin Follows Through With Intense Sell-Off

Bitcoin was met with yet another wave of heavy selling pressure at the $12,000 psychological line yesterday, which caused the cryptocurrency to shed more than $900 on its way back down to the $11,165 level.

This will be the third consecutive time in 31 days that Bitcoin has failed to clear the $12,100 level.

In yesterday’s analysis, we pointed out that Bitcoin was entering overbought conditions on the 4-hour MACD indicator and that it could trigger a sell-off in the near-term. This was most likely the cause of yesterday’s reversal.

Reports from a cryptocurrency data collecting company show that more than $58 million worth of long positions on BitMEX was liquidated after the sell-off happened. This most probably aided the decline.

Meanwhile, a total of $25 billion has been removed from the cryptocurrency market in the last 24 hours, as traders were swept with panic.

BTCUSD – 4-Hour Chart

Key BTC Levels to Watch

BTC has clawed its way back above the $11,350 support area where it currently is. The first level to take now is the $11,550 (50-day SMA) followed by the vital resistance at $11,650. The $11,650 level is supported by the 100-day SMA further invigorating that area.

On the flip side, if the current panic in the market continues, we could see the benchmark cryptocurrency slide to the $11,100 support right before we see the $11,000 psychological level. Further declines from this level will open Bitcoin up to a $10,800 price tag and subsequently the $10,500.

That said, what seems appropriate at this point is to wait to see price make a significant move (upwards or downwards) before making any aggressive bets.

Total market capital: $374 billion

Bitcoin market capital: $210 billion

Bitcoin dominance: 56%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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