The price of Bitcoin (BTC) fell sharply from UDS 11,823 to UDS 11,102 in the last 48 hours. While on a macro level, the digital asset remains in an uptrend, there appear to be three key factors behind the decline.
The presence of a crucial resistance level at USD 12,000, several whales taking profits and a new test of a major support area probably catalyzed the drop.
This Bitcoin whale sold BTC at a price of $12,000 after holding it for 2 years
Bitcoin fights in the $11,800 – $12,500 resistance zone
Since the first week of August, Bitcoin System has tried to break the resistance range of $11,800 to $12,500. Each of the five attempts to break the $12,500, $12,000 and $11,800 levels has resulted in strong rejections.
One possible reason that the USD 12,000 level has served as a difficult area of resistance for buyers is that it has been a historically relevant area of resistance. After February 2018 and July 2019, this is the third time in two years that BTC has tested this resistance zone.
A trader known as „DonAlt“ said that, while Bitcoin might recover, bass players have an easier time invalidating it than before. He said:
„You can find temporary relief here, but it still seems pretty heavy. Bearishers have an even easier time invalidating now than before, if the price exceeds UDS 11,760 at closing, BTC is likely to go higher. Until it does, I will assume it will go down.