Bitcoin (BTC/USD) Market Analysis — August 12

Bitcoin (BTC) recently peaked at a three-month high at $46,800 yesterday but has suffered a $4,000 decline since then. As expected, the rest of the cryptocurrency market followed in the steps of the benchmark cryptocurrency, causing the market valuation to drop by $830 million or 4.3% within a few hours.

The past few days went positively for Bitcoin bulls since the drop to the $43k area on Monday. This drop came after the US Congress failed to converge on specific taxation legislation on the cryptocurrency industry.

However, the primary cryptocurrency reacted positively to this drop and rebounded near the $46,800 area within a few hours. This increase got followed by a mild consolidation around the $45,500 area, but bulls saved the day, boosting the price to the $46,800 level this time. With this rise, BTC hit its highest point since May 16. Nonetheless, bulls failed to sustain this increase, which has sent the cryptocurrency to the $44,000 area.

At press time, Bitcoin’s market capitalization stands at $833 billion, and the entire market valuation has dropped to $1.85 trillion.

Key Bitcoin Levels to Watch — August 12

Bitcoin now trades at the $44,340 Mark following the resurgence of bearish momentum in the market. The current decline is a much-needed one, considering that BTC had entered overbought conditions. Following this correction, we should see a full recovery to the recent high of $46,800 and, subsequently, the $50,000 psychological resistance.

That said, bulls need to prevent extra declines below the $44k line to ensure that a rebound is possible from the $44k support. The price currently receives additional support from the 50 SMA level.

Meanwhile, our resistance levels are at $45,000, $46,000, and $47,000, and our key support levels are at $44,000, $43,000, and $42,000.

Total Market Capitalization: $1.85 trillion

Bitcoin Market Capitalization: $834 billion

Bitcoin Dominance: 45%

Market Rank: #1

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