Bitcoin has in the past days enjoyed a surge in price after almost hitting $14,000, a new high in more than a year. The largest coin in terms of market capitalization has had strong buy orders in the past couple of days leading to it occupying almost 65% of the entire cryptocurrency market cap.
Áfter failing to gain strong resistance at $12,000, Bitcoin’s price is now heading downward towards $11,000. Though with a strong daily buy, Bitcoin is now seeing a very strong hourly sell with many sell orders lining up.
Given the strong sell and its failure to gain support at MA (moving average) 50, the pivot point could be expected at 11,700 one day S1 as Bitcoin is failing to gain support $12,000.
What does this mean for Bitcoin’s price?
Bitcoin is currently correcting which is normal for healthy growth. Given the sharp increase in the price of Bitcoin the past days, such a correction was expected.
There is no need for panic yet as this is a normal phenomena in all financial markets.
If Bitcoin can gain support at $11,700, we can expect to see the coin gradually move towards $13,000 but if Bitcoin fails to support at $11,700, we can see the coin go as low as $11,500.
As of writing time, Bitcoin is trading just above $11,800. The market capitalization has also dropped from over $385 billion to now $330 billion as other crypto assets are following suit with the downward trajectory.