Bitcoin Price Analysis: BTC/USD spirals on rejection at $12,000

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  • Bitcoin plunges back to last week’s levels above $11,000 after rising to new 2020 highs.
  • BTC/USD is facing acute resistance at $10,400 despite having confirmed support at $11,200.

Bitcoin weekend action has been tremendous this weekend. In addition to staying above $11,000, the largest cryptocurrency has for the first time this year traded above $12,000. A new yearly high was reached at $12,158 (on Bitfinex) before a reversal took effect.

Following the reversal, BTC/USD is trading at $11,286 amid growing bearish momentum. The RSI’s downward action puts emphasis on the downtrend. A slide under the 70 (overbought) is likely to increase the retreat with Bitcoin resting support at $11,200.

With the support conformed at $11,200, BTC/USD is still dealing with the key seller zone at $11,400. This very key level to watch as it would give the bulls a push to the next resistance at $11,650. Glancing further up, $11,800 is another resistance that has been in the picture since March 2018. In addition, the psychological level of $12,000 – $12,100 which happens to be the new 2020 high will remain in the sight glass.

BTC/USD 1-hour chart

BTC/USD price chart

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