Bitcoin price corrects lower after failing to stay above $12,000

  • Transaction fees fell 58% last week as the market is less hectic again

  • The size of the storage pool has also decreased, which means fewer transactions are waiting to be confirmed

  • Bitcoin price has corrected after failing to stay above $ 12,000, although a quick bounce signals a strong signal

Bitcoin (BTC / USD) price was revised lower in the afternoon after the world's largest digital coin topped the $ 12,000 mark earlier today. The cops failed to keep the rally going. However, a rapid rebound in intraday support signals that the uptrend is still intact.

Transaction fees decrease

It appears that Bitcoin transaction fees fell 58% last week as the market appears to have returned to a less hectic level of activity. The data from the Blockchain.com The website shows that the fees per transaction have dropped to $ 2.72.

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Bitcoin transaction fees are falling

Transaction fees have been falling as the size of the storage pool – the store of valid transactions awaiting confirmation – has also decreased. This waiting room is usually made up of low-fee transactions as they get stuck in the mempool before being confirmed.

Logically, a higher number of transactions awaiting confirmation will cause miners to select the transactions that offer higher fees. As a result, other users are forced to increase the mining fees.

Probably a continuation

Bitcoin price likes to move on weekends. This is understandable given the lower liquidity. Yesterday, buyers started raising the price to $ 12,080 on Monday morning.

Since then, price action has turned down over $ 500 to hit the 200 DMA, which is just above the $ 11,500 mark. However, buyers were able to react again and return the price movements via two key technical indicators.

Bitcoin Price Hour Chart (TradingView)

A confluence of support / resistance levels around USD 11,700 could not contain the uptrend. As long as the price movement is trading above this zone, Bitcoin is bullish in the short term. One of the main characteristics of strong uptrends is the ability to recover from mistakes.

However, buyers should be concerned as Bitcoin buyers failed to sustain the uptrend above $ 12,000. Since there are two nearly identical swing highs above $ 12,000, this situation could easily turn into a double top reversal pattern. This would be very bearish for Bitcoin price as it would open the door for a return to $ 9,000.

Summary

Bitcoin price returned below $ 12,000 this afternoon after the bulls failed to sustain the rally above $ 12,000. Regardless, both the storage pool size and Bitcoin transaction fees decrease.



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