After bitcoin (BTC) reached a new yearly high last night, the price is now falling considerably. The race found support twice on a rising trend line, but at the same time it forms a bearish formation.
At the time of writing, the price of bitcoin (BTC) is $ 11,697 according to CoinMarketCap after the price has fallen by 8.44% in the last 24 hours. The bitcoin dominance has increased further after the altcoins dark red figures.
The total market capitalization therefore drops back to $ 336.1 billion. Bitcoin’s market capitalization currently stands at $ 210.9 billion, increasing bitcoin dominance to 62.7%.
On the hourly graph, bitcoin is currently forming a falling triangular pattern, with ever lower highs, but with lows that find support at $ 11,300. This pattern is seen as bearish and could therefore be a signal for further declines.
At the time of writing, the rising trend line, where bitcoin still found support yesterday evening and this morning, stands firm. If this trend line does not hold, there are a number of supports below this line.
The next one is around $ 11,300 with the $ 11,000 below. If the price drops here too, there is another support at $ 10,800.
That the trend for the short term may be bearish becomes more likely when we look at the relative strength index (RSI) . A clear downward trend can be seen on the 4-hour graph, which may be an indication that bullish momentum is decreasing.
The reason that bitcoin suddenly rose so sharply in recent days is not entirely clear. There was no clear trigger . The analyst Alex Krüger therefore thinks that they were aggressive buyers:
Based on price promotions, there were aggressive buyers with deep pockets in action last night.