Bitcoin’s price action has been rather lackluster lately, with sellers pushing the crypto back below $ 19,000 as it struggles to gain clear momentum either way.
This one price promotion was surprising given the macro strength created as a result of the recent multi-week uptrend, but it looks like a serious uptrend is imminent in the near term if buyers can get the better of them.
Where the medium-term trends are likely to depend on whether the USD 18,600 support or USD 19,400 resistance breaks first.
These levels have been significant to the cryptocurrency for a long time and could lead to a consolidation phase in the coming days.
One trader believes that where the next market trends will take place will depend almost entirely on Bitcoin’s response to a crucial support level it tested during the overnight sell-off.
He notes that as long as BTC hovers above this level, it may need “ life support ” to save its uptrend and avoid seeing a serious downside.
If BTC drops in the near term and faces a technical glitch, there’s a good chance altcoins will be hit particularly hard by this drop.
Bitcoin struggles to break $ 19,000; Consolidation continues
At the moment of writing, Bitcoin is trading just under 2% at the current price of $ 18,900. This marks a notable decline from the recent highs of $ 19,400 set a few days ago.
The selling pressure it has seen at this level has been quite significant and has seen the cryptocurrency see notable retraces on multiple occasions.
Where it develops in the medium term should largely depend on whether or not it stabilizes above or below USD 19,000.
Any break above USD 19,400 would be technically significant, but there’s a good chance it will continue to consolidate until it does.
Analyst: BTC may need life support soon as selling pressure increases
A merchant offered a somewhat bearish outlook on Bitcoin based on the latest technical developments, noting that the cryptocurrency could be poised to see a serious downside if bulls cannot continue to defend the key USD 18,600 support level.
“Support that supports us in life support,” he said, pointing to the strength of support that exists at this price point.
Image Courtesy of Teddy. Source: BTCUSD on TradingView.
The next days should provide in sight into the long-term significance of this level.
Featured image from Unsplash. Charts from TradingView.