On August 11th, the gold and silver prices showed some corrective movements. the same thing has been observed in the crypto market. Bitcoin (BTC) fell $ 700 from $ 11,800 to $ 11,100 in one dayMarking a short-term correction.
However, Has the general upward momentum of the crypto market gone? Given the strong waves in Chainlink (LINK) and Tezos (XTZ), the bull market still seems to be on fire today.
Daily performance of the cryptocurrency market. Source: Coin360
Bitcoin has crucial support at $ 11,200
If Bitcoin wants to maintain its upward momentum, the key support is between $ 11,100 and $ 11,300, as shown in the graph below.
Daily chart of the BTC / USD pair. Source: TradingView
The daily chart shows a crucial support level in the green box. As long as this level is supported, further dynamics can be expected.
However, once the Bitcoin price loses the support level at $ 11,100 to $ 11,300, The price is expected to drop significantly towards the $ 10,000 range. The next massive support areas are at $ 9,700-10,000, which is similar to the CME gap.
BTC CME daily chart. Source: TradingView
Open gaps are often tested and closed before the market continues to rise. In this case, the price has accelerated over the weekend, leaving a CME gap between $ 9,650 and $ 9,900.
If the price of Bitcoin falls below $ 11,200, the price will likely continue to fall towards these regions as there are several arguments.. Not only are there horizontal support levels in this area, but the 100 and 200 day moving averages join these zones to ensure steady support.
What should you pay attention to in the short term with Bitcoin?
BTC / USDT 4-hour chart. Source: TradingView
The short term levels to follow are defined in the graph. On the upside, the clear resistance levels are structured at $ 11,700-11,800 and $ 11,950-12,050.
In the short term, the trend has changed as the price hits falling highs. Falling highs often point to further bearish momentumto break through that These resistance levels are crucial if Bitcoin price is to continue rising towards $ 15,000.
However, it’s also important to keep support at the $ 11,100-11,250 level. If this level is not supported by the next test, a likely decline towards the $ 10,800 or $ 10,000 level is expected.
The bullish scenario for Bitcoin
Graph of the 4 hour bullish scenario for the BTC / USDT pair. Source: TradingView
The bullish scenario is simply defined. First, expect a rejection at the $ 11,700 level after which a test of $ 11,400 should provide support.
If this scenario plays out, there is likely a breakout above $ 12,000 on the table. What are the goals for Bitcoin after this level?
Most likely $ 15,000as the area between $ 11,800 and $ 12,000 is the last massive level of resistance before the bull market actually warms up.
The bearish scenario for Bitcoin
BTC / USDT 2 Hour Bearish Scenario Chart. Source: TradingView
The bearish scenario is surrounded by the same crucial levels as a $ 11,700 denial could result in a significant decline.
However, in the bearish scenario, the $ 11,400 level does not offer any support. Such a decline could test the $ 11,200 level at another time. The more often a level is tested, the weaker it becomes.
If $ 11,200 does not provide assistance in the next test, then it is down to $ 10,000.
The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement is associated with risks. You should do your own research when making a decision.