Bitcoin faced harsh rejection at the new consolidation phase as analysts noted earlier this morning, as the price plummeted. In our today’s Bitcoin news, we are reading more on the price analysis.
The harsh move came directly after the test of the all-time high level which got broken and tested on multiple occasions over the past day. The resistance level is a strong one and should not be overlooked. Whether or not this level can be flipped into support, will soon offer a serious insight into the market’s near-term outlook. One trader noted that there are few indicators that are turning bearish after Bitcoin faced harsh rejection and he is hoping for a consolidation phase as well. Bitcoin and the rest of the crypto market were caught in an intense uptrend over the past few days and weeks and the momentum finally stalled when the cryptocurrency set a new all-time high on different exchanges.
The strength that was seen in the crypto space since the decline is a positive sign but the overnight rejection below $20,000 shows how intense the region’s resistance level is. One trader hoped that BTC will see a bout of consolidation as it could bring multiple bearish indicators into the neutral or bullish territory. At the time of writing, BTC had its price plummeted and trading down below 5% with a current price of $18,700, marking a notable decline from the recent highs of $19,800 which was set yesterday.
The highs marked the highest level seen by the benchmark cryptocurrency since 2017 and on some exchanges even marked an all-time high. The resistance was significant here and there were no signs of letting up anytime soon. Speaking on the price action, one analyst said that the RSI indicator shows strong signs of weakness. With that said, a consolidation phase for the cryptocurrency will likely be the best hope and will allow the bearish indicators to drift back to being neutral:
“Very confused by BTC. RSI shows some weakness. Dream scenario we consolidate here.”
If Bitcoin is able to set a higher low and continue holding above the intra-decline lows of $18,200, the cryptocurrency will be poised for another strong rebound in the upcoming days ahead.
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