Bitcoin drops 7% within an hour after going over $ 12,000

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A week after Bitcoin’s $ 10,000 resurgence, the first suspicions of a reversal, if not a dump, are visible. Between 4:00 a.m. UTC and 5:00 a.m. UTC on August 2, the price of Bitcoin fell by over $ 1,000, an 8% drop within an hour.Just hours before this dump, Bitcoin had passed the cap of $ 12,000. The last time the price of Bitcoin was above $ 12,000 was in August 2019, before the price fell to $ 7,000 due to the breaking of the descending triangle, the failure to launch major institutional products. like Bakkt and China’s stance on Bitcoin and cryptocurrency exchanges.

Source: BTCUSD via Trading View

Two weeks ago, Bitcoin started its bullish move from $ 9,200 to over $ 10,000 on July 26. This is the cryptocurrency’s first big move since the halving in May 2020, when a two-month sideways move began. Between June and July, Bitcoin’s realized volatility fell to 23%, its lowest since March 2019.

As of July 22, the price started to resurface. Following the positive news of cryptocurrency custody banking solutions getting the green light from US regulators and a steady increase in cash inflows into Bitcoin markets, the price began to slowly rise. Between July 22 and July 26, the price fell from $ 9,200 to just under $ 10,000, a level it failed to consolidate above in May and June, despite the change in the offer because of the halving.

Last week’s $ 10,000 move was unlikely to be the result of a whale move as there was no report of a larger buy order placed above the Bitcoin trading price and it was judged as an organic breakout from a period of low volatility.

Bitcoin’s price split in press time was $ 11,200, a week after it passed over, testifies to the upside-down nature of the cryptocurrency market.

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