Bitcoin
Bitcoin Must Consolidate Above This Key Level, Or Risk Plunging to $11,900
Cole Petersen | Oct 23, 2020 | 18:00
- It has been a wild past few days for Bitcoin and the aggregated cryptocurrency market
- Bitcoin has been able to post consistent gains throughout as of late, with buyers and sellers largely reaching an impasse following its slight rejection at $13,200
- This has created a slight consolidation phase around $13,000 that it has been caught within throughout the past two days
- If this phase persists in the near-term, BTC must continue holding above $12,800
- One analyst noted that a break below this level could open the gates for a move down to lows of $11,900
Bitcoin and the aggregated cryptocurrency market have seen a roller-coaster week, with Bitcoin’s previous weakness being fully erased by bulls who sent it surging to fresh yearly highs of $13,200.
This move’s intensity has sparked a sense of euphoria and hope amongst traders and investors, with may expecting further upside in the days and weeks ahead.
For this to come to fruition, bulls must continue defending against a break below $12,800.
One analyst noted that a break below this level could open the gates for BTC to see a sharp decline down towards $11,900.
Bitcoin Struggles to Gain Momentum as Selling Pressure Mounts
On a short-term scale, Bitcoin’s momentum is faltering slightly due to some heavy selling pressure within the lower-$13,000 region.
Until it can break above this region, there’s a possibility that a retrace could be imminent in the near-term.
At the time of writing, Bitcoin is trading flat at its current price of $12,985. This is around the price at which it has been trading for the past couple of days.
Each selloff has been aggressively absorbed by bulls, which is a positive sign.
Analyst: Here’s the Crucial Defense BTC Needs to Defend
While sharing his thoughts on Bitcoin’s present technical outlook, a popular crypto-focused analyst and trader at the Amsterdam Stock Exchange noted that $12,800 is the key support level to watch in the near-term.
He contends that a defense of this level could lead BTC towards $13,500, whereas a rejection could cause it to drop towards $11,900.
“Bitcoin: As long as $12,750-12,800 holds, I think $13,500 is next. But if it doesn’t hold as a pivot, I assume the price drops further down toward $12,200 and potentially $11,900.”
Image Courtesy of Crypto Michael. Source: BTCUSD on TradingView.
How the entire market trends in the months ahead will depend on Bitcoin. This makes it vital for BTC and altcoins investors alike that the benchmark crypto maintains its newfound momentum.
Featured image from Unsplash. Charts from TradingView.
