Bitcoin Resets After Failure to Launch Past $12,000

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  • Bitcoin failed to stay above $12,000 again and has fallen back into a well established range
  • Alts also dipped along with Bitcoin, but not enough to be considered a problem
  • Such dips are common in a bull run, and the space saw much more severe ones in the 2017 bull run

Bitcoin has reentered a channel it had managed to escape on Monday after once more failing to stay over $12,000. The drop, which also precipitated an alt selloff, represents another failed attempt at overcoming the $12,000 barrier, although it should present a good chance to buy up some alts for the bounce that is likely to follow while Bitcoin ranges.

Bitcoin Back Into the Channel

After spending three weeks bouncing between $11,200 and $12,000 since late July, Bitcoin looked like it had finally broken through the resistance at the third time of asking following a $600 move on Monday, but it has since collapsed back into the range:

Bitcoin chart 1

$12,000 has proved stubborn resistance ever since Bitcoin first attempted it on August 1, since when Bitcoin has established a range in the $11,000s. These levels have been respected in the price action since the move up through $12,000 on Monday:

Bitcoin chart 2

Bitcoin was unable to rebound through the $12,085 level which immediately sent it down below $11,900 and firmly back into the middle of the range. It is likely that Bitcoin will continue to range in this zone for the rest of the month while it gathers steam for another attempt on $12,000. As long as Bitcoin is above $10,500 we can remain bullish on the immediate future.

Alts Follow, But Bullish Momentum Holds

Unsurprisingly, alts generally echoed Bitcoin’s price action, with very few managing to hold on in the wake of the fall – only one coin, YFI, made a positive move while Bitcoin was dropping. While Bitcoin remains in overall bullish territory however there is no reason to sell medium or long term positions as a bounce is highly likely, with DeFi coins in particular looking set to rebound strongly once the Bitcoin sell off has stopped, which it seems to have done now.

In bull markets dips are for buying, and certainly not for selling on 3.5% Bitcoin falls. The 2017 bull run saw some tremendous dips along the way to all time highs, some as much as 40%. If you have no spare funds to buy in during these dips then the best advice is simply to hold what you have and not panic sell.