Bitcoin descends after trading around $12k at $11.9k for the longest time now and is currently below $11.5k due to a bearish intraday. The recent accumulation below $12k appears like a new normal as it was in the previous month below $10k and $9.5k.
However, a sizeable correction below $11.5k is acceptable for a notable bullish crossover and persistent trade above $12k. But this pullback is not an end to the price rally that was initiated towards the end of the previous month but is an ultimate power inherited with volatility.
#Bitcoin is a sleeping giant.
Still underrated imho.
— Jason A. Williams🚀 (@GoingParabolic) August 21, 2020
According to its characteristics, Bitcoin is often compared with Gold and standard reserves, but the underlying technology is often underrated. BTC is believed to be an enhanced path to digitalization, and the 1st generation is crypto is nothing but digital gold.
Here, there will be many who still believe that Bitcoin is nothing but a hoax and will take no time to become zero. However, Bitcoin holds the ultimate power to be the treasury reserve as people understand and believe in the power of technology rather than taking it just as an investment asset.
Bitcoin is about to go from digital gold to treasury reserve.
— Louis 路易 🇹🇼 (@louishliu) August 21, 2020
Moreover, this Pandemic has proved that fiat and banking crisis is not the last resort when it comes to rescuing, but metals like Gold, silver, and power like Bitcoin is ultimate.
WHY BUFFET is OUT OF BANKS . Banks bankrupt. MAJOR BANKING CRISIS COMING FAST. Fed & Treasury to take over banking system? Fed and Treasury “helicopter fake money” direct to people to avoid mass rioting? Not a time to “Think about it.” How much gold, silver, Bitcoin do you have?
— therealkiyosaki (@theRealKiyosaki) August 21, 2020
Bitcoin Price Analysis
Bitcoin on the 2-hourly chart clearly exhibits a crossover above $12k thrice in the past three weeks. The most recent bullish divergence above $12k and even above $12.4k happened in the previous week, straight after BTC‘s continuous descending price channel drawing a bearish crossover. With the recent slide below $11.5k, BTC lacks support from MA50 & MA200 around $11.7k & $11.8k price area.
With the bearish candlewick, the technicals are drawing a complete negative sentiment as the BTC/USD price trend breaches the 20-day lower Bollinger Band. The MACD chart also holds a bearish crossover with RSI, notably below the major support at 28.43.