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
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.
Originally from Bitcoinist.com https://ift.tt/3jdxKH7
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