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Anissimov Konstantin
Bitcoin, Ethereum, Litecoin Digital cryptocurrencys on a notebook

Bitcoin’s Uptrend Is Held Off by the $12,000 Resistance Level Throughout August

This crucial price hurdle rejected BTC’s upward price action several times throughout August, while the $11,000 support level held falling prices at bay. The strength of each of these crucial levels was shown over the past month, without any of them breaking.

Indeed, Bitcoin kicked off the month with a bang. Its price surged from $11,351.61 to hit a new yearly high of $12,135 on August 2nd. However, it quickly became evident that this supply wall was going to be troublesome. The pioneer cryptocurrency took a 13% nosedive a few minutes after reaching this milestone, dropping to a monthly low of $10,546.15.

From that moment on, BTC began to consolidate within a narrow range, mostly trading between the overhead resistance and the support level previously mentioned. Although Bitcoin was able to rise to a new yearly high of $12,500 on August 17th, the upswing was part of a fakeout that saw prices quickly retrace below $12,000. Such a dormant price action forced the Bollinger bands to squeeze on the daily chart, indicating further lackluster.

Indeed, the bellwether cryptocurrency moved back to the $11,000 support level by August 25th to then rebound towards $12,000 as August came to an end. Bitcoin was able to close the month at $11,655, providing investors a monthly return of 2.67%.

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Ethereum Investors Enjoy a Whopping 26% Monthly Return

The bullish price action Ethereum went through in July seems to have spilled over August. Indeed, the smart contracts giant kicked off the month trading at a low of $346.86 and immediately began trending upwards. By August 2nd, Ether had risen nearly 20% to hit a high of $415.

Nevertheless, this major hurdle rejected the uptrend triggering a 21% downswing that saw ETH plummet to a monthly low of $325.75. As prices were dropping, a significant number of buy orders were filled along the way. The high level of demand that Ether gained during the bearish impulse was substantial enough to allow it to rebound quickly.

By August 5th, the second-largest cryptocurrency by market capitalization was already up 25%, hovering around the $400 resistance level. While prices were able to stabilize throughout the following days around $385, the most significant bullish impulse of the month took place on August 13th. On this day alone, Ethereum rose over 12%.

Given the impressive buying pressure behind Ethereum, it was able to hit a new yearly high of $447.50 on August 17th. This resistance level, however, seems to have served as a take profit point for many investors. As sell orders began to pile up, ETH retraced by 17.46% to a low of $369.36 on August 25th.

Ethereum entered an uptrend during the last six days of the month that saw it recover most of the losses incurred. The smart contracts giant closed the month at a high of $433.88, providing investors with a whopping monthly return of 26.22%.

On the Cusp of a New Bullish Cycle

Most investors tend to look at Bitcoin to determine whether or not the cryptocurrency market has entered a new bullish cycle. By analyzing its price action over the past two years, it seems like the catalyst for a new bull market will be when BTC moves past mid-June 2019’s high of nearly $14,000. Such an upswing will indicate that the pioneer cryptocurrency has made a new higher high and is poised to advance further.

Regardless, Ethereum seems to have already entered a full-blown bull market. Turning the $340 support level into resistance was the pivotal point for this cryptocurrency to aim for new all-time highs. Now, it looks like it is just a matter of time before Ether breaks the $447.5 resistance barrier and moves to the next major area of interest that sits at $800.

Konstantin Anissimov, Executive Director at CEX.IO

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