Bitcoin: $12,000 Sharply Rejected

Bitcoin has once again been active again in Asian trade, but this time it's fallen sharply.

BTC has fallen away

Bitcoin has once again been active again in Asian trade, but this time it’s fallen sharply.

Yesterday, we were really testing the $12,000 level and I was saying just how important it was in terms of it being the bottom of the previous swing high. BTC has been on a heater of recent times, but for now, it looks like things might be holding firm and this might just be the start of a period of consolidation.

There is also the fact that our US friends have been away so there would be a huge reduction in both volume and liquidity. When that happens, getting price to run through a level and hold is far more unlikely.

The US traders will certainly be back tomorrow as we have a pretty big data point coming out in the form of US employment. A poor result could, in fact, help boost Bitcoin as there are a number of growth fears on a global level. While I would certainly stop short of trying to suggest that BTC has any gold-like properties, there is a bit of a case to be made.

 

Technical Outlook

Little has changed on the technical front since yesterday, but we do get a bit of a clearer picture of just how strong that $12,000 level is.

As I’ve said before, on a purely technical basis when price keeps making lower highs it is bearish. So in the short-term, it’s fair to say that it is the case. So for the bulls to carry on, we will need to see that level break.

The top of that range is $12,500 and so far we haven’t even got above $12,000. So in the short-term, there is work to do here.

To the downside, the round number levels are again big. We are now testing $11,000, but clearly, $10,000 is the big one.

Bottom line: Price will need to crack the $10,000 level, for now, to be bearish. If it gets above $12,500, the bulls are back.

BTC
BTC – 240min.
ABOUT THE AUTHOR See More
Rowan Crosby
Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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