Quick take:
- After breaking the $12k ceiling, Bitcoin has fallen to as low as $11,600.
- Traders had expected Bitcoin to maintain the $12k support zone.
- Bitcoin losing the $12k could be a sign of manipulation.
- The move down to $11,600 has shaken bulls and more losses could follow.
On the 17th of this month, Bitcoin (BTC) confidently broke the $12k ceiling and posted a 2020 peak value of $12,470 – Binance rate. The move had prompted many Bitcoin traders to express a level of optimism that the $12k resistance level would be turned into a support zone. However, Bitcoin had other plans as the King of Crypto has dropped to as low as $11,600. At the time of writing, Bitcoin is trading at $11,722.
Bitcoin Losing $12k Could be Due to Manipulation
According to the team at Crypterium, Bitcoin losing $12k could have been the work of manipulators.
Bitcoin’s price dropped by 5% over the past day and returned back under the $12,000 level. The trading volume continues to remain around the same level — (about $25 billion per day).
This is very alarming since the volatility has returned, but the activity of the participants has not. This can only indicate that at the current moment the market is driven exclusively by manipulators.
Bitcoin Could Retest $11,000 As a Result
Additionally, Bitcoin has now printed a rising wedge which usually precedes a price decline. The team at Crypterium sees one scenario where Bitcoin could fall to as low as $11,000.
Based on this analytics, we expect the Bitcoin price to drop to at least $11,000 in the near future.
Bitcoin Losing $12k has Shaken Bulls, $11,200 Possible
The ideas expressed by the team at Crypterium have further been echoed by the analytics team at OKEx. The latter team explained that the move down by Bitcoin has shaken bulls. Furthermore, the team at OKEx puts forth a scenario where Bitcoin could go as low as $11,200.
Yesterday’s false breakout had a big impact on trader morale. It is most detrimental to the short- to mid-term pattern. The resistance level at $12,080 is an intraday threshold. If the BTC price cannot break this level, $11,650 could be the next support level to watch. Another mid-term threshold is located around $11,200.