Bitcoin Price Analysis — August 26

Bitcoin continues to show significant weakness as it now hovers near the $11,350 support. Bulls have managed to hold defense at this level since yesterday, with every decline below this level being met with strong dip-buying.

Earlier today bears tried to take BTC lower, forcing it down to $11,255. However, there was a sharp pickup that sent the price back to the $11,400 area.

Bitcoin’s woes began after its rejection for the $12,400 level. The current bearish pressure is mainly because of that rejection. At press time, Bitcoin is trading around $11,503, which represents a 7.5% drop from its recent highs.

Although the $11,350 support has served Bitcoin well over the past few days, it is uncertain if this line would hold longer.

One analyst has drawn attention to Bitcoin’s current weekly candle—which will be completed on Sunday—as a strong sign that further correction is imminent. With that, he is advising buyers to take the initiative and muster-up enough buying momentum to invalidate this bearish “prophecy.”

Key Levels to Watch

The crucial level to break for Bitcoin remains the $11,800 resistance. A break and close above this level will reinstall the original bullish momentum. However, before BTC gets to that level, it first needs to reclaim the $11,650 resistance. The $11,650 line is a confluence of a long-standing resistance and the 4-hour 50 SMA.

On the flip side, a retest of the $11,250 level could be bad for Bitcoin’s recovery.

Total market capital: $360.6 billion

Bitcoin market capital: $212 billion

Bitcoin dominance: 58.8%

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