After consolidating in the upper-$11,000 period for an extended period of time, Bitcoin (BTC) incurred a sudden influx of selling pressure that sent the crypto reeling down to lows of roughly $11,300, at which point it found some support.
Analysts are now noting that Bitcoin’s bulls are safe so long as the crypto holds above a key support level, but a breach below this level could lead to a significant pullback.
Bitcoin’s latest drop came about after an extended period of consolidation in the upper $11,000 region, which had led many analysts to believe that BTC was gearing up for a big movement upwards.
Despite this, the subsequent drop that followed this consolidation period appears to signal that Bitcoin is not ready to move into the $12,000 region, as it has tried and failed on multiple occasions to break above this level.
Big Chonis, a popular crypto analyst on Twitter, spoke about BTC in a recent tweet, explaining that bulls shouldn’t be too concerned so long as Bitcoin holds above $11,400, which is a key support level at the moment.
“$BTC – bulls have no worries…above this line,” he explained in a recent tweet.
Although $11,400 does appear to be a near-term support level, it is important to note that the multiple failed tests of $12,000 do seem to spell trouble for the cryptocurrency, which may signal that further losses are imminent in the near-future.
“Wyckoff for the win. Dead on. Failed test to 12k and dumped,” Crypto Warrior, another popular analyst, noted in a recent tweet while pointing to a chart that shows BTC may drop further.
As the weekend kicks off and Bitcoin reacts to its latest drop, it is highly likely that analysts will soon gain greater insight into whether or not a move to $12,000 is out of the question in the near-term.
Featured image from Shutterstock.
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