cryptocurrency market

Misery for bulls as Bitcoin flops to $11,100, again

Overnight sell-off pushed Bitcoin to lows of $11,150 as altcoins post similar losses.

A miserable Wednesday for crypto saw widespread losses across the market as Bitcoin printed a $1,000 candle down and a bearish pattern tanked alts, some in double-digit losses.

Although Bitcoin’s price has hit highs of $11,400 in the past few hours, the bearish outlook looms over the wider market, and coins could post more losses to hit new lows.

Cryptocurrency market heat map showing widespread losses. Source: Coin360


BTC/USD 1-day price chart. Source: TradingView

Bitcoin price dropped from a high of $11,955 to lows of $11,150 as bears reveled in crypto’s bad day yesterday.

After taking out the 20-day EMA at $11,552, bears are strengthening and have aggressively defended the area around $11,400 during the Asian trading session.

If they succeed in taking out the $11k zone, a bearish breakout could see BTC/USD validate a head and shoulders pattern. The danger for bulls at this level is that prices could fall steeply to lows of $9,500.

According to pseudonymous Bitcoin trader George1Trader, its likely sustained pressure could see BTC/USD dip to lows of $9,000. The investor points to the massive hurdle in front of Bitcoin bulls if they fail to hit a close above today’s open.

If lower is the easiest route, then the next target would be last month’s lows.

Chart showing probable dip for BTC/USD if bears take out $11,000. Source: George1Trader on Twitter

As of writing, the BTC/USD pair is trying to hold onto prices above $11,300 to avoid a retest of $11k, a scenario that effectively gives sellers the upper hand.

Conversely, a rebound above major resistance at $11,600 would see bulls retake the initiative. BTC/USD would likely enter another consolidation phase around the $11,300-$11,800 range before a re-launching another attempt at $12k.

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Ethereum and XRP have also registered huge declines over the past day and could sink to new lows if bulls fail at overhead resistance areas around $450 and $0.295 respectively.

ETH/USD price 1 day chart with sloping RSI. Source: TradingView

Ether traded as high as $490 on September 1 as bulls eyed a new multi-year high. Yesterday’s rocky ride saw it drop nearly 10% to lows of $420. Buyers need to confront seller congestion at $450 to retain an interest in the psychological $500.

As of writing, ETH/USD is trading around $427. If sellers take out the 20-day EMA at $412, declines to lows of $370 are possible.

For XRP/USD, the critical area to watch is $0.263 (50 SMA) as a break below could see a pullback to lows of $0.23. XRP is trading around $0.269 as of writing.


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