Bitcoin May Need “Life Support” as Bulls Try to Defend Key Support
Bitcoin’s price action has been rather lackluster as of late, with sellers forcing the crypto back below $19,000 as it struggles to gain any clear momentum in either direction.
This price action has been surprising considering the macro strength incurred due to the recent multi-week uptrend, but it does seem as though serious upside could be imminent in the near-term if buyers can gain the upper hand.
Where it trends in the mid-term will likely depend on whether its $18,600 support or $19,400 resistance is broken first.
These levels have long been significant for the cryptocurrency and may continue causing it to see a consolidation phase in the days ahead.
One trader believes that where the market trends next will depend almost entirely upon Bitcoin’s reaction to one crucial support level that it tested during the overnight selloff.
He notes that as long as BTC hovers above this level, it may need “life support” to save its uptrend and stop it from seeing any serious downside.
If BTC turns lower in the near-term and faces any technical breakdown, there’s a strong possibility that altcoins will be hit especially hard by this decline.
Bitcoin Struggles to Break $19,000; Consolidation Persists
At the time of writing, Bitcoin is trading down just under 2% at its current price of $18,900. This marks a notable decline from its recent highs of $19,400 set just a couple of days ago.
The selling pressure it has seen at this level has been quite significant and has caused the cryptocurrency to see notable retraces on multiple occasions.
Where it trends in the mid-term should depend largely on whether or not it stabilizes above or below $19,000.
Any break above $19,400 would be technically significant, but there’s a strong chance it will continue consolidating until this happens.
Analyst: BTC May Soon Need “Life Support” as Selling Pressure Ramps Up
One trader offered a somewhat bearish outlook on Bitcoin based on its latest technical developments, noting that the cryptocurrency could be poised to see some serious downside if bulls cannot continue defending its key $18,600 support level.
“Support supporting us in life support,” he said while pointing to the strength of the support that exists at this price level.
Image Courtesy of Teddy. Source: BTCUSD on TradingView.
The coming few days should provide insight into this level’s long-term significance.
Featured image from Unsplash. Charts from TradingView.