- Bitcoin and the entire crypto market – with a few exceptions – is flashing signs of weakness at the present moment
- This has come as a result of the sharp decline seen last night, which sent BTC reeling below its key $12,000 support
- The benchmark crypto is now consolidating between $11,600 and $12,000
- This is the same trading range that it was trading in before its recent break above $12,000
- Analysts do believe that the crypto is now in a precarious position, as a continuing series of hourly, and possibly daily, closes below $12,000 could lead to significantly further weakness
Bitcoin is now caught within yet another consolidation phase as it trades within the upper-$11,000 region. This is around the price at which the crypto traded at prior to the breakout rally seen just a couple of days ago.
The crypto’s inability to sustain above $12,000 despite the overt strength of its recent movement does seem to spell trouble for its near-term outlook.
Analysts concur with this notion and are now noting that a failure for it to break back above $12,000 could cause it to see a major selloff in the days ahead.
One trader is specifically targeting a movement towards $11,000 in the near-term, noting that a break below this level could lead to even lower lows.
Bitcoin’s Outlook Weakens Following Rejection above $12,000
Over the past two days, Bitcoin was able to stabilize above $12,000.
This was an overtly bullish development that indicated upside was imminent, as it marked a notable technical breakout that signaled a movement towards its next resistance region at $13,000 might have been imminent.
Despite this, the selling pressure it faced around $12,500 proved to be insurmountable, and ultimately resulted in it sliding back into the $11,000 region last night.
Analysts are now setting their sights on a move to the crypto’s range lows at $11,000.
“Quite the D3 wick above the weekly range high and closed back inside. Unless price can reclaim the 12k Weekly level, letting the short position run, targeting local range lows,” one trader said.
Image Courtesy of TraderXO. Chart via TradingView.
Bitcoin Short Count Explodes Higher as Bears Grow Confident
Bears are growing confident in their control over Bitcoin, as one analyst noted that shorts are currently at a four-month high.
He also notes that a pullback to $10,000 may be imminent unless bulls can reclaim $12,000.
“BTC / USD: Nice to see a pullback overall but breaking back below this $12,000 level for an extended period of time could be a worrying sign that a pullback to mid $10,000 could be on the cards unless we can quickly see PA recover. Also, shorts are currently at a 4 month high,” he explained.
Image Courtesy of Cactus. Chart via TradingView.
Unless bulls step up in the coming hours and negate this weakness, $12,500 may mark a mid-term top for Bitcoin.
Featured image from Unsplash. Charts from TradingView.