It’s been a wild last few days for Bitcoin and the aggregate cryptocurrency market.
Bitcoin has seen consistent gains across the board lately, with buyers and sellers largely at a dead end after being slightly turned down at $ 13,200.
This has resulted in a slight period of consolidation around $ 13,000 with BTC caught in the past two days
If this phase continues in the near future, BTC will have to continue holding above $ 12,800.
One analyst commented that a break below this level could open the gates for a move down to lows of $ 11,900.
Bitcoin and the aggregate cryptocurrency market had a rollercoaster week, with Bitcoin’s earlier weakness being completely erased by the bulls that sent BTC to new annual highs of $ 13,200.
The intensity of this move has created a sense of euphoria and hope among traders and investors who can expect further uptrends in the coming days and weeks.
For this to materialize, the bulls will have to continue to defend against a break below $ 12,800.
One analyst commented that a break below this level could open the door for BTC to a sharp decline towards $ 11,900.
Bitcoin is fighting for momentum due to increasing selling pressure
In the short term, Bitcoin’s momentum is slowing somewhat due to strong selling pressure in the region below $ 13,000.
As long as Bitcoin cannot go beyond this region, there is a chance that a decline is imminent in the near future
At the time of writing, Bitcoin is trading flat at $ 12,985. This roughly corresponds to the price at which it was traded in the past few days.
Any sell-offs have been aggressively absorbed by bulls – which is a positive sign.
Analyst: Here is the level that BTC has to defend
Regarding Bitcoin’s technical outlook, a popular cryptography-focused analyst and trader on the Amsterdam Stock Exchange comments that $ 12,800 is the top tier of support to watch for in the near future.
He claims that defending this level could lead BTC towards $ 13,500, while a denial could cause it to fall towards $ 11,900.
„Bitcoin: As long as there is $ 12,750-12,800, I think $ 13,500 is next. But if it doesn’t pivot, I assume the price will continue to drop towards $ 12,200 and possibly $ 11,900. “
How the entire market will develop in the coming months depends on Bitcoin. Therefore, it is vital for both BTC and altcoin investors that the benchmark cryptocurrency maintain its newfound momentum.