Well, this is getting annoying, isn’t it? Bitcoin just can’t seem to make up its mind about where it wants to be. After jumping past the $12,000 mark just yesterday, the currency has now shrunk back to $11,400. That’s a 600 drop in just one day. Why can’t this coin decide it wants more out of life? What is it afraid of?
Why Can’t Bitcoin Just Stay High?
$12,000 is clearly proving itself to be the resistance level of the year at this point. The currency has crossed the threshold a few times only to retract quickly after. It’s almost as if there was some invisible force that was preventing bitcoin from withstanding the fame that comes with surging into higher territory.
The good news is that the currency has managed to withstand a little bit of the strain and has regained some strength over the past few hours. Initially, the currency fell back to $11,200, which means it’s currently up roughly $200 at the time of writing. Still, this isn’t enough to get true bitcoin enthusiasts excited anymore. Bitcoin needs to move beyond $12K and it needs to stay there. Nothing else will do.
As usual, many analysts took to social media and other platforms to tell their followers where they thought the world’s number one cryptocurrency by market cap would head in the coming weeks and months. Joe DiPasquale – the head honcho of Bit Bull Capital – stated in a recent interview:
Bitcoin has a strong support at $11,000, followed by $10,500 and then $10,000. If $10K is broken, we may see a real downtrend, but so long as the price stays around current levels, bullish sentiment is likely to prevail.
Bitcoin, to be fair, has not fallen below $11,000 in quite some time. However, as we have seen in the world of cryptocurrency, nothing is out of the question, and there is no telling what may happen next. Kiana Danial – CEO of Invest Diva – offered similar sentiment to Joe, stating that bitcoin’s potential to fall into the $10K region should not be ignored. She explained:
11,235 is the neckline of the head and shoulder chart pattern bitcoin is forming. A confirmation of a break below this level could open doors for further drops towards $10,400. Otherwise, we could expect the BTC/USD pair to consolidate between $12,400 and $11,235 until it finds a new direction.
Further Drops Before a the Bulls Step in Again?
Jon Pearlstone of the Crypto Patterns newsletter was also quick to state that we may see bitcoin correct itself even further before it surges upwards again. He mentioned:
Bitcoin reversed yesterday’s gains with strong volume and is now below yesterday’s closing price. These are often indicators of price rejection, which often bring more significant corrections. That said, price is still well above important resistance levels. Important levels of support to watch on the current pullback are $10,500 and $9,500.