Bull’s inability to extend the cryptocurrency’s momentum has led it to grow increasingly bearish, as one simple charting pattern could suggest that its recent highs will mark a mid-term top that is proceeded by an intense downtrend.
In order for this bearishness to be invalidated, it is imperative that buyers hold the crypto above a critical support level, as a break below this could lead to a violent movement down towards $7,000.
Bitcoin Begins Consolidating as Short-Term Trend Grows Unclear
At the time of writing, Bitcoin is trading up marginally at its current price of $10,250, which marks a notable decline from recent highs of just under $10,500, and only a slight climb from lows of $10,100.
These two aforementioned prices appear to mark the upper and lower boundaries of a newly formed trading range, and which of these is decisively broken first could offer analysts and investors alike deeper insight into the crypto’s short-term trend.
In order for the incredibly firm mid-to-long term uptrend that Bitcoin is caught within to extend, it is imperative that it holds above $10,000, as a break below the five-figure price region could spark a move towards $7,000.
Teddy, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that BTC is still holding above a few key levels, but his chart does reveal that a move into the mid-$7,000 region could be inbound if bulls are unable to garner any major strength.
“BTC Shorter timeframe’s volatility aside, weekly range is holding up pretty well. Price still above: – a 200 day hold resistance – previous weekly high. Longer timeframe’s bias will remain bullish as long as it continuously closes above the range,” he explained.
#BITCOIN | $BTC
Shorter timeframe's volatility aside, weekly range is holding up pretty well (