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Bitcoin price reverses from $12,000, is the bull run over?

Bitcoin BTC Price

The Bitcoin price is back to its basics. Gyration. Swinging as usual and wreaking havoc to overly optimistic traders. Today, prices pulled back after hitting $12,000 in the wee hours of the day. 

After retesting the mega sell wall and finding no momentum, the pullback is forcing liquidations beyond Bitcoin. 

The rise of DeFi and the subsequent tokenization of BTC for yield farming has been a money minter in the past few days. 

The Bitcoin price crash

Over-leveraged after a FOMO wave, today’s crash in Bitcoin prices and the contagion it had on the crypto space could probably trigger a huge correction. 

At the time of writing the Bitcoin price was trending at around $11,327.

The pullback in Bitcoin prices, analysts speculate, is because of two concurrent—and negative events: the first being the outage of Binance and Coinbase, and second, the reported seizure of Bithumb. Both exchanges are influential, cumulatively drawing billions of trading volumes. 

Bithumb’s offices, according to sources, was raided by South Korea’s police because of fraud. Allegedly, Bithumb failed to list a token even after pre-selling the digital asset for a whopping $25 million resulting in investor losses. 

Binance, through their official Twitter account, informed the community that their technical team was working overtime to restore normal service. The cause of the inconveniencing outage was pinned to a chatbot which crashed due to overload.

We are aware of some temporary difficulties accessing Binance. Rest assured our team is working on it. Thank you for your patience and apologies for any inconvenience caused.

PlanB hopes; Pornhub supports Bitcoin as regulated bourses list BTC products

Even so, the crash of Bitcoin had a knock-on effect on all major cryptocurrencies pointing to how influential BTC is in. Still, there are optimists. 

Like Changpeng Zhao, the CEO of Binance.

And,

PlanB—the analyst behind the Stock-to-Flow (S2F) price prediction model, who is calling for patience. He cites the industry still at nascence and the fact that it is barely four months after Bitcoin halved. 

At the background of today’s market crash is positive news from the Vienna and Singapore stock exchanges, and Pornhub—which now supports Litecoin and Bitcoin as payment for its Pornhub Premium package. 

Wiener Börse or the Vienna stock exchange became the third regulated bourse to list a Bitcoin product. This follows the listing of 21 Shares AG’s Bitcoin and Ethereum (ETH) exchange-traded products (ETPs). 

Meanwhile, the Singapore Stock Exchange (SGX) said it will list Bitcoin and Ethereum price indices in partnership with CryptoCompare.

Bitcoin price analysis

Bitcoin Price Daily Chart for Sep 2
Technical Chart: Trading View

The Bitcoin price is steadying after shaving over $600 in gains. In the last week of trading, the Bitcoin price is at parity with the USD but trails ETH.

From the daily price chart, the path of least resistance is up—from a top down approach. However, in the immediate term, bears are in control following today’s high-volume market crash. 

Notably, today’s bears completely reversed gains of Aug 1, pushing back the Bitcoin price below the middle BB. Since bulls failed to edge past the main sell wall and resistance level at $12,000, it is highly likely that the Bitcoin price will slide towards $10,500. This is so because today’s bear confirms the double bar bear reversal pattern of Aug 17 and 18.

Therefore, in light of today’s volatility and reversal, the candlestick arrangement suggests weakness. As such, every high could technically be a selling opportunity with targets at $10,500. 

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Dalmas Ngetich

Dalmas Ngetich

Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies. Enjoying the opportunity to help educate bitcoin enthusiasts, he writes insights and coin price chart analysis.

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