Bitcoin Technical Analysis: BTC/USD Plummets To $11,100, Is This The End Of The Rally?

By John Isige
August 26, 2020 Updated August 26, 2020
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  • Bitcoin price free-falls below several support areas in a bid to create fresh demand at a lower price level.
  • Recovery will remain mundane in the current Asian session and probably the European session according to technical levels.

Bitcoin plunged to refresh levels towards $11,000 as expected. The largest cryptocurrency has since the week started targeted levels above $12,000. However, buyers have been willing but unfortunately failed to gather the right amount of volume to sustain gains. On the other hand, bears were bound to gain traction, forcing Bitcoin below critical support areas like $11,600 and $11,400.

The largest cryptocurrency explored levels around $11,000 leaving the support at $11,000 untested. A shallow recovery has seen Bitcoin bounce to $11,334 (prevailing market value). I believed that a slide to levels close to $11,000 was going to send Bitcoin rattling through barriers and within no time overcome the psychological hurdle at $12,000.

However, according to the various technical levels, recovery is going to be gradual. Therefore, it is vital that bulls hold onto all the gains they get and be careful not lose sight of the critical $12,000 level. Otherwise, the support at $11,000 is well within reach or worse the bearish leg could extend towards $10,500.

Related reading: Tether Flips Bitcoin [BTC] as the Medium of Transfer with a Capital Flight to Stablecoins

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

The Relative Strength Index (RSI), for instance, is holding the ground marginally below the midline (50). The downtrend appears to have been averted in favor of a reversal. A return above 50 would signal continued upward movement as Bitcoin takes down the resistance currently at $11,400 and $11,600.

The Moving Average Convergence Divergence (MACD) brings to light the fact that selling pressure has not entirely been purged from the market. Besides, this is the reason why recovery is lethargic and a reminder that they cannot afford to waiver in spite of the headwinds standing in the way to $12,000.

Bitcoin Intraday Levels

Spot rate: $11,337

Relative change: 18.41

Percentage change: 0.18%

Trend: Short term bullish bias

Volatility: Extremely low

Read more: On-Chain Bitcoin [BTC] Trends Suggest That Whales Are On A Stacking Spree

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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