- Bitcoin has entered a period of consolidation after topping at $19,900 a number of days ago.
- The coin currently trades for $19,200, having bounced from the local lows but also halving failed to pass the $19,500 resistance level.
- An analyst thinks that Bitcoin could face a correction toward $17,000 if it manages to close under $18,700.
- BTC seems primed to hold this level for the time being, though.
- Analysts remain long-term bullish on the leading cryptocurrency as institutional players continue to enter the space.
Bitcoin Could Drop If It Doesn’t Close $18,700
Bitcoin has entered a period of consolidation after topping at $19,900 a number of days ago. The coin currently trades for $19,200, having bounced from the local lows but also halving failed to pass the $19,500 resistance level.
An analyst thinks that Bitcoin could face a correction toward $17,000 if it manages to close under $18,700:
“The 3D $BTC chart to me isn’t looking too hot. Close back around 18.7k tonight and we likely get some awesome long entries in the next week or so. Around 16.9-17.1k I have big boy money waiting for some longer term #bitcoin.”
$18,700 has been an important technical level for Bitcoin over the past few days.
Chart of BTC's price action over the past few months with an analysis by crypto trader and chartist Pentoshi (@pentosh1 on Twitter). Source: BTCUSD from TradingView.com
The trader that shared the chart above isn’t the first to have mentioned the importance of the mid-$18,000s. As reported by Bitcoinist previously, one crypto-asset analyst that has been historically accurate thinks that Bitcoin will be bullish as long as it holds the $18,500 region.
Macro Trends Remain Bullish
Bitcoin remains bullish in the long-term due to institutional adoption, though. Niall Ferguson, a financial analyst and historian of the Hoover Institution at Stanford, recently said:
“The acceptance of Bitcoin as a digital asset, a quasi-digital gold, has been accelerated by this pandemic. Almost every month, some major figure in the mainstream investment world has said, ‘OK, now I’ll take BTC seriously.’ This process of institutional adoption has further to run.”
Case in point: just today, MicroStrategy just announced that it is looking to raise $400 million in a debt security sale. The proceeds of the sale will be used to buy Bitcoin, according to a press release:
“MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”
This raise will mean that MicroStrategy expects to outperform the interest that it will accumulate with these securities.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k