Bitcoin Price Analysis — 20th Of August

Bitcoin got some attention a few days ago after it reached a 2020 high of $12,475. That leg up seemed pretty solid as Bitcoin seemed to stay above $12,000 longer than it had any time this year. However, bears later swung into action, sending the cryptocurrency down by about $1,000 over a few days.

The global cryptocurrency market remained depressed into today’s session as the market shed another $11 billion.

It appears that Bitcoin has now slipped below an ascending channel that has been prevailing for close to a month now on our 4-hour chart. The base of the channel, which was a former support level, has now turned into a resistance for BTC to defeat before reaching $12k again.

Key Levels to Watch

As mentioned above, BTC continues to struggle beneath the channel resistance around $11,890. Bulls have to push the benchmark cryptocurrency back into the channel before panic selling is triggered.

Immediate support can be found at the 100 simple moving average ($11,744), where Bitcoin should be able to find a good bounce if it drops further in the near-term.

A continuation in decline should activate the $11,650 support and subsequently the $11,400 level. Finally, the last safety net for bulls is the $11,000 psychological line. A break below that level could trigger a massive sell-off.

On the flip side, the first line of defense is the 21 simple moving average ($11,966) and subsequently the $12k mark. Next up is the $12,100 followed by the 12,350.

On our MACD indicator, we can see that Bitcoin is building up steam to attempt the $12k level once again.

Total market capital: $373 billion

Bitcoin market capital: $219 billion

Bitcoin dominance: 58.7%

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