Since the Bitcoin price (BTC) couldn’t get above the USD 12,000 resistance level, a reversal was not a surprise. Over the past few days, the BTC/USD has retreated to USD 11,400, a correction of almost 10%.
Meanwhile, gold, silver and other commodities are also correcting due to a slight bounce in the DXY, or the US Dollar Currency Index.
In addition, several heavy engines such as Chainlink (LINK) and Tezos (XTZ) also showed substantial corrections in the last few days. Could this be a time to buy the fall or are more revisions imminent? Let’s take a look at the graphs.
3 reasons why Bitcoin’s price dropped to $11,600 and why it wasn’t a surprise
Bitcoin was rejected at $11,800 after returning to the range
The Bitcoin price was unable to force a break above the $12,000 resistance level, which led to a drop back into the range.
As discussed in the previous article, the $12,000 area was crucial in maintaining any additional upward momentum. It was unable to maintain this support, which means that a reversal is likely.
Immediately after the break below USD 12,000, the price of Bitcoin fell towards the support area at USD 11,600. This USD 11,600 level resulted in a slight rebound to USD 11,800. However, as the chart shows, the USD 11,800 area was confirmed as a new resistance level.
Such a change in support/resistance usually means more disadvantages as buyers are not strong enough to force the price above this resistance level. Given the weakness of such a move, more support levels can be tested below it.
Bitcoin price fails to break 12,000 USD, how far can it fall?
In fact, this is what happened when Bitcoin Future fell to the next support level, which is the green zone, and the last crucial hurdle before a potentially quick fall to USD 10,000.