Bitcoin
Bitcoin’s Bull Case Degrades Following Selloff; What Analysts Are Watching
Cole Petersen | Aug 25, 2020 | 18:00
- Bitcoin has seen some slight downside today, marking a bearish resolution to the bout of sideways trading that it has been caught within throughout the past few days
- Yesterday, bulls were showing some signs of strength as they pushed the crypto towards $12,000
- This fleeting momentum seems to indicate that bulls are still plagued by underlying weakness
- As for where BTC may trend next, analysts are noting that this did strike a blow to the bull case, opening the gates for it to reach some lower downside targets
- It is important to keep in mind that the lower-$11,000 region is laced with significant buying pressure
Bitcoin and the entire cryptocurrency market saw a sharp downturn today that came about when BTC lost the momentum that was previously guiding it up towards $12,000.
The sharp decline sent it reeling down to its crucial high time frame support in the $9,400 region and seemed to be indicative of technical weakness.
Buyers were able to post an ardent defense of this level, but the crypto still appears to be in a precarious position.
One analyst is noting that this decline struck a blow to the cryptocurrency’s technical outlook, putting it at risk of seeing significantly further near-term downside.
Bitcoin Strength Degrades Following Failed Attempt to Break Above $12,000
Bitcoin has been caught within a strong consolidation phase throughout the past few weeks.
This has caused it to mostly range within the upper-$11,000 region, with each break above or below this range being fleeting.
At the time of writing, Bitcoin is trading down over 2% at its current price of $11,500. This is around where it has been trading throughout the past several weeks.
Bulls were able to guard against a break below $11,400 – this level has become a strong support for the crypto in recent times.
Where Bitcoin trends in the coming few hours should depend primarily on whether or not the support level it is trading above continues holding firm.
Analyst: BTC Prone to Seeing Significant Near-Term Downside
While speaking about this latest decline’s impacts on Bitcoin’s technical outlook, one analyst explained that it did strike a blow to BTC’s bull case.
“Mapped BTC out play by play throughout this consolidation and breakdown with a few simple levels and lines. Feels like this has been an incredibly clean patch of PA to trade through. Looking for downside targets from here, not seeing any reason to be hyper bull right now.”
Image Courtesy of Cold Blooded Shiller. Chart via TradingView.
The hours and days ahead should be revealing as to just how impactful this latest decline will be on Bitcoin’s mid-term uptrend.
Featured image from Unsplash. Charts from TradingView.
