Bitcoin is showing signs of losing its momentum following its massive rally from its recent $10,000 lows.
The crypto is trading up nearly 80% from where it was just a few weeks ago, and whether or not it can push higher in the near-term should depend largely on the resistance at $18,000.
Earlier this week, BTC faced a grim rejection at $18,600 that slowed its ascent and caused it to plunge lower.
The consolidation phase seen in the time since may mark a “cool-down” phase, which means that some slight downside could be imminent in the near-term.
Bitcoin Struggles to Hold Above $18,000
At the time of writing, Bitcoin is trading just a hair below $18,000 at its current price of $17,950. This marks a notable upswing from its multi-day lows of $17,400 but a decline from highs of $18,600.
Because it is trading squarely between these two levels, where it trends in the near-term may depend largely on whether or not bulls can flip the $18,000 equilibrium level into support.
An ability to do so could be the impetus for another leg higher.
Trader Claims BTC May Enter a “Cool-down” Period
Image Courtesy of TraderXO. Source: BTCUSD on TradingView.
Where BTC trends throughout the coming few days should depend largely on its continued reaction to $18,000. Any firm break above this level, or rejection below it, could even set the tone for the rest of 2020.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/2Kq0QHi
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