Bitcoin (BTC) has continued to consolidate around its key near-term support at $8,000 and both its bulls and bears have remained deadlocked as it fails to gain any decisive momentum in the time since its recent drop down to its current price levels.
Analysts are now noting that Bitcoin is currently trading at a key trendline that could significantly influence its near-term price action, with a break below it potentially leading to further losses.
Bitcoin Consolidates Around $8,000 as Bulls and Bears Remain in Deadlock
At the time of writing, Bitcoin is trading down marginally at its current price of $8,150, which marks a slight climb from its daily lows of $8,000 that have been visited on multiple occasions over the past several days.
Although this price level does appear to be a strong support region for the cryptocurrency, its slow grind downwards that has ensued in the time since it lost the upwards momentum that was gained during its meteoric rally to $10,600 may point to an underlying weakness amongst the cryptocurrency’s bulls.
Analysts are noting that Bitcoin may still be able to post a decent rally so long as it is able to hold above its key near-term support level, but they are also noting that a break below this level could spark a sharp sell-off.
The Crypto Dog, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet while referencing the chart seen below.
“$BTC at daily support. I expected a bounce before now, but not stressing (yet). Above POC – bullish. Below – re-evaluate,” he explained.
$BTC at daily support. I expected a bounce before now, but not stressing (yet).
Above POC – bullish
Below – re-evaluate pic.twitter.com/Xhf39B1IxY
— The Crypto Dog
(@TheCryptoDog) November 20, 2019
Reaction to Parabolic Trendline May Give Insight into BTC’s Future Price Action
One important factor to keep in mind is that Bitcoin is currently trading at its parabolic trendline, which could spark a massive movement in either direction, depending on whether BTC’s bulls or bears prevail in their current battle.
Mr. Anderson, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that a hold above this trendline could spark an “explosive” movement, whereas a dip below could send BTC reeling significantly lower.
“$BTC: back for a retest of the previous parabolic trend line. As discussed over a month ago… A weekly break of this diagonal will likely bring on a new “playground” for PA. Whereas as a hold can lead to explosive behavior and continuation within this level,” he explained while pointing to the below chart.
back for a retest of the previous parabolic trend line
As discussed over a month ago… A weekly break of this diagonal will likely bring on a new “playground” for PA.
Whereas as a hold can lead to explosive behavior and continuation within this level
(Chart untouched) pic.twitter.com/oXimIeMs3v
— Mr. Anderson (@TrueCrypto28) November 20, 2019
The coming few hours and days will likely determine where Bitcoin trends for the coming weeks and months as 2019 draws to a close.
Featured image from Shutterstock.
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