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The price of Bitcoin (BTC) fell sharply to $ 11,322 after reaching a daily high of $ 11,909
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The drip came when US unemployment claims fell to $ 1.2 million, but lawmakers’ inability to reach a deal on the next coronavirus incentive package has worried some investors
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Despite returning to the $ 11.4K support, Bitcoin price remains in an uptrend
Crypto-brand daily price card. Source: Coin360
Earlier today, Bitcoin (BTC) price dropped abruptly to $ 11,322 after peaking at $ 11,909.
The mild correction came when US unemployment claims fell to 1.2 million and US markets opened slightly in the red, but at the end of the day the Dow and S&P 500 closed with a gain of 0.7% and 0.17%.
Meanwhile, NASDAQ continued to pull higher, closing the day with a gain of 1.66%.
While stocks are moving higher each week, current collapse of talks between U.S. lawmakers trying to negotiate the next phase of coronavirus economic stimulus could weigh investor confidence and cause markets to open new week in the red.
BTC / USD 4-hour chart. Source: TradingView
Traders will note that BTC price started to lose momentum around $ 11,800 and once the price fell below the high volume VPVR node at $ 11,583, the price quickly fell to test the support again at $ 11,400.
While uncomfortable for some, reversing the current one should come as no surprise as its routine for lower levels of Bitcoin price to confirm that an earlier level of resistance now functions as support.
At the time of writing, BTC is above $ 11,650, but a drop below $ 11,500 and the $ 11,400 support could result in another drop to $ 11,200.
As long as the price stays above $ 11,100, the pattern of higher lows remains, which means that the bullish uptrend remains intact.
Bitcoin daily price chart. Source: Coin360
Surprisingly, because Bitcoin price fell 4.89%, altcoins held up relatively well, except Ether (ETH) which pulled 8.76% back to $ 362.35 before recovering to $ 379.80.
At the time of this writing, Cardano (ADA) is down 4.19%, XPR is down 3.03% and Tezos (XTZ) is down 5.99% to trade at $ 3.05.
According to CoinMarketCap, the total cryptocurrency market cap now stands at $ 350.7 billion. The dominance index of Bitcoin is currently 61.1%.
