- Bitcoin has been struggling to maintain its immense momentum following the multiple rejections seen at $16,000
- It is now consolidating within the lower-$15,000 region, with bulls struggling to hold it above this level as it continues slowly drifting lower
- It did see a sharp rebound from its overnight lows of $14,800 that were set during yesterday’s selloff, with the support here being significant
- That being said, the multitude of rejections at $16,000 hasn’t bode well for its short-term outlook
- Until it can break above this level, it could be positioned to see further weakness in the short-term
- This comes as it tests a crucial parabolic trendline that has been formed throughout the past few months
Bitcoin has been consolidating over the past week, with the selling pressure at $16,000 so far proving to be too much for its buyers to handle.
Until this level is broken above, bulls may be plagued by underlying weakness, and it may see a prolonged consolidation phase.
This consolidation could favor altcoins, and many are already catching major upwards momentum while BTC stagnates – especially those within the DeFi sector.
One analyst explained that Bitcoin is now testing a key parabolic trendline. It is imperative that this is defended, or else it could bear witness to some major downside.
Bitcoin Consolidates as Buyers Struggle to Gain Momentum
At the time of writing, Bitcoin is trading down just under 1% at its current price of $15,200. This marks a notable decline from daily highs of $15,500 that were set overnight.
Since reeling down to lows of $14,800 yesterday morning and rebounding back above $15,000, the cryptocurrency has primarily been consolidating.
Until it can break this consolidation phase and rally higher, attention may start drifting towards altcoins.
Today, Yearn.finance’s YFI token and many other so-called “blue chip” DeFi tokens are trading up, with many seeing parabolic momentum over the past week.
Trader Claims BTC is Testing a Parabolic Trendline
One trader explained in a recent tweet that it is imperative that Bitcoin guard against seeing any further downside in the mid-term.
He noted that the crypto is currently testing a parabolic trendline that has been formed throughout the past several months.
“BTC is trying to form an ascending triangle while testing parabola support.”
Image Courtesy of Tyler Coates. Source: BTCUSD on TradingView.
If this trendline continues being defended in the near-term, it could help catalyze significantly further momentum. A break below it, however, could be dire for Bitcoin’s near-term trend.
Featured image from Unsplash. Charts from TradingView.