Bitcoin (BTC) fell several hundred dollars in seconds on August 10, while $12,000 again proved to be very difficult to manage.
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Data from Cointelegraph Markets and Coin360 showed a 4% drop in the BTC/USD pair during Monday’s trading, rebounding to $11,500 and since then returning to $11,700.
In doing so, Bitcoin Era cleanly covered the last gap in the CME Group’s Bitcoin futures markets, which was just below $11,700. BTC/USD 1-day price chart
A classic move, Cointelegraph predicted during the day that the markets would probably try to come down in short order to fill the gap, in line with standard behavior.
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The event caused a dramatic increase in the liquidations of the derivatives company BitMEX, as confirmed by the data of the monitoring resource Skew.
For Cointelegraph Markets analyst Michaël van de Poppe, the sudden drop indicates that Bitcoin is returning to the pattern of behavior observed in recent months.
„A smaller time graph explains what just happened. Essentially, we are back on the game plan of outreach,“ he told Twitter followers.
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Spreading“ within a certain price range has become a feature of BTC/USD in 2020, with recent upward gains over an extended period, slowly declining to a point – a process known as compression.
In the future, lower levels could undergo a further test, with significant support just above the $10,000 still able to form the price floor, thinks Van de Poppe.
„A wider time frame; still waiting for such a scenario,“ he continued.
„However, if we break the $12,000, I assume we’ll see $13,000.“
Attention will now focus on the ability of the bulls to consolidate $12,000 as a support zone, something that has not yet happened at any significant level for Bitcoin.
However, the latest weekly close marked the highest since January 2018 and the initial drop from Bitcoin’s all-time high of $20,000.