Bitcoin Breaking Below These Two Levels May Suggest the Bull Trend Is Over
- Bitcoin has struggled over recent days, falling below the pivotal supports at $11,500 and $11,700.
- As of this article’s writing, the leading cryptocurrency trades for $11,450, posting a 3% loss in the past 24 hours.
- It is actually outperforming most altcoins, which have lost all momentum due to a rush for safety in BTC.
- Bitcoin is not yet in a medium to long-term bear trend, but the asset will enter one if it loses these two technical levels.
- Analysts are hopeful, though, that BTC will hold the lower level at the very least.
- Bitcoin managing to bounce off this level may confirm the existence of a medium-term bull trend,
Bitcoin on the Verge of Losing the Bull Trend?
Bitcoin has slipped over the past 72 hours. After peaking at $12,500 on Monday, the asset has slipped lower and lower, now trading for $11,450. This isn’t much than it was just a week ago, but analysts have begun to mark out important levels as the downtrend may persist.
One cryptocurrency trader shared the chart below on August 21st. Along with showing the recent price action, it shows important levels for BTC to hold moving forward.
Per the trader Bitcoin must hold both $11,000-11,200 and $10,600 to maintain the bull trend:
“Levels to watch on $BTC if we continue dropping: $11.2-11k and $10.6k. Should these two major supports be broken then it could signal a shift in trend in the medium to long term. So far $11,000 hasn’t been raided in the past few weeks.”
Chart of BTC's recent price action by crypto trader Flood (@ThinkingUSD on Twitter). Chart from TradingView.com
Another analyst has pointed to the low-$11,000s as an important level for Bitcoin to hold. One noted that there is “heavy support” in that region due to the consolidation BTC saw in that region earlier this month.
$10,500 Could Hold, Technicals Suggest
Even if $11,000 breaks, analysts have some confidence that the $10,500 level will hold.
For reference, that specific level is one of macro importance to Bitcoin. As readers are likely aware of, $10,500 was a level at which three separate BTC rallies topped at: one in October 2019, one in March 2020, and once in June of this year.
It already held once during this rally, with a flash crash bouncing right above $10,500. The level is likely to hold for a second time should Bitcoin test the level due to the Ichimoku Cloud technical indicator.
Another trader shared this chart on August 21st. It shows that the Ichimoku Cloud’s “Kijun” line sits at $10,600 at the moment.
Chart of BTC's recent price action by crypto trader Ledger Status (@LedgerStatus on Twitter). Chart from TradingView.com
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Breaking Below These Two Levels May Signal the Bull Trend Is Over
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow