Although the price of Bitcoin (BTC) showed weakness last week, it managed to protect its most important support zone from $11,200.
The Fed Chairman‘s speech, along with the end of futures and options in recent days, has seen several discussions about volatility throughout the week. Despite this, the critical $11,200 support level remained unbroken. This benchmark proves that the $12,000 resistance level is a short-term goal.
Support zone well defended
As the Daily Bitcoin Price table shows, the critical support area has been successfully defended.
The daily chart points to the net resistance zone (red) of $11,800 – $12,000 and the support zone (green) of $11,100 – $11,300. This level of support has been advocated since early August.
The $11,100 – $11,300 space is critical because getting under that space can be a big problem. That’s because of the July 27 vertical rally.
The breakthrough here could end by dropping below $10,000. An increase can be expected as long as the level of support is maintained. In this case, a jump above $11,800 – 12,000 (red) is possible.
A bullish scenario for Bitcoin
The ascension scenario will take place at a strong defensive level of 11,100 to 11,200. It seems that this is not so difficult at the moment.
The short-term resistance level was tested again on August 26 and saw a slight improvement from $11,500 to $11,200.
If the price holds $ 11,300 as support and manages to break $11,700, it will reach a high peak.
In this case, Bitcoin’s short-term ceiling and base prices are positioned higher. The next short-term target is $12,000.
Downgrade scenario for Bitcoin
As the US dollar weakens, the likelihood of further declines for Bitcoin wanes. Still, if the price of BTC is going to be even more negative, there should be a definite return of $11,700.
In this case, pessimism increases. In this scenario, the $11,300 level also needs to be rejected, followed by a downward trend.
If $11,000 is lost, potential support levels between $10,100 – $10,400 and $9,600 – $9,800 will be tested, where the CME futures gap still remains
