Bitcoin (BTC) fell several hundred dollars in seconds on August 10, as $ 12,000 once again proved too hot to handle.
Daily snapshot of the cryptocurrency market on August 6. Source: Coin360
BTC price finds new target at $ 11,700
Data from Cointelegraph Markets and Coin360 showed BTC / USD plunged 4% during Monday’s session, rebounding to $ 11,500 and since returning to $ 11,700.
In doing so, Bitcoin perfectly filled the latest gap in the CME Group’s Bitcoin futures markets, which was just below $ 11,700.
BTC / USD 1 day price table. Source: Coin360
A classic move, Cointelegraph predicted the day when markets would likely attempt to move lower on short time frames to close the gap, per standard behavior.
The event caused a dramatic increase in liquidations on derivatives giant BitMEX, data from monitoring resource Skew confirms.
Liquidation BTC / USD sur BitMEX. Source: Skew
Analyst: $ 13,000 to follow $ 12,000 breakout
For Michaël van de Poppe, analyst at Cointelegraph Markets, the sudden drop suggested that Bitcoin was returning to the pattern of behavior observed in recent months.
“A smaller timeline explaining what just happened. Essentially, we’re back in the varied game plan, ”he told Twitter followers.
The ‘fork’ in a certain price corridor has become a feature of BTC / USD in 2020, with recent gains upsetting an extended period, which has slowly narrowed to the point – a process known as squeeze.
Going forward, lower levels could see a new test, with significant support just above $ 10,000 still likely to form the price floor, Van de Poppe believes.
“Longer delay; is still waiting for such a scenario, ”he continued.
“If we break $ 12,000, I guess we’ll see $ 13,000. “
Attention will therefore now be focused on the ability of the bulls to cement $ 12,000 as a support area, which has yet to happen at a significant level for Bitcoin.
Nonetheless, the latest weekly close marked the highest since January 2018 and the initial drop from Bitcoin’s all-time highs of $ 20,000.
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