Bitcoin's strong sell-off has slowed down over the past 24 hours, as the bulls created some noticeable buying pressure in the lower zone of the $ 8k zone, and brought BTC into a consolidation phase in the $ 8,600 zone. .
However, its price action over the past week has shown a huge decline from the recent highest level, and is affecting the bullish structure formed earlier this year.
Now, top analysts are noting that an extremely strong resistance exists on the BTC price zone, and may be enough to spark another major sell-off.
Bitcoin consolidates as an analyst keeping an eye on key levels
At the time of writing, Bitcoin is trading at $ 8,600, which is the price range it has traded for the past 24 hours.
The cryptocurrency sell-off began on the Sunday before it hit a high of $ 10,000, and it dropped rapidly to $ 1,400 to its current level. The inability of the bulls to regain their position on this level is a serious sign for cryptocurrencies.
Analysts are currently noting that Bitcoin's sideways price action over the past two days will provide insight into where the market will move in the future.
Well-known Trader Crypto Micahël explained in a recent tweet that, if the bears break the current support zone, Bitcoin may drop to the next support zone of $ 7,500.
At this point, remaining fairly unchanged in the perspectives.
Holding here and I noted $ 9,000-9,200 retest is likely. Losing it and observd be pointing $ 7,500-7,700. pic.twitter.com/618qSHBQ1h
– Crypto Michaël (@CryptoMichNL) February 29, 2020
“At this point, I still haven't changed my opinion. If Bitcoin holds this support ($ 8,200 – $ 8,400) then it can retest the $ 9,000-9,200 zone. Losing it the next support zone is found at $ 7,500-7,700. ”
BTC can provide a golden opportunity for short orders if it reaches this level
Renowned analyst Teddy believes that Bitcoin's recent price action disables its bullish market structure, and he believes the next downside is imminent.
He also noted that a movement towards $ 9,150 could be a golden opportunity to initiate a short order for traders, as a refusal at this level will cause a huge sell-off.
Brutal breakout, supports were annihilated – clear bear bias of price structure.
Currently consolidating in a down channel, historically they break upwards – 9150’s rejection will be a golden short opportunity.
Retest of previous support as resistance? pic.twitter.com/nHzNAyV9Cj
– TEDDY (₿) (@TeddyCleps) February 29, 2020
“A breakdown of support and data has been destroyed – it is clear that the market is inclined to a bearish structure. Currently prices are consolidating in a descending channel, historically if it breaks up and a decline at $ 9,150 will provide an excellent short opportunity. Also to confirm the previous support level into resistance. ”
If Bitcoin fails to achieve any upward momentum, or faces rejection of other minor resistances before the weekly candle closes tomorrow, then a subsequent dip is possible.
Bitcoin price today | Source: Coinmarketcap
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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