Investors were disappointed yesterday after Bitcoin faced a sharp and sudden rejection at $11,000, which signaled that the cryptocurrency was not ready to move higher and may have to visit a lower price region before it continues its journey upwards.
After this drop, Bitcoin has once again found itself caught in a tight trading range, which may mark a period of consolidation before it makes its next big move upwards.
Bitcoin Falls into Previously Established Trading Range as Selling Pressure Builds
At the time of writing, Bitcoin is trading down roughly 2% at its current price of $10,475, which is down significantly from its 24-hour highs of over $11,000 that were set yesterday evening.
When Bitcoin moved sharply towards $11,000 yesterday, many analysts believed that BTC’s bulls were stepping up and attempting to extend the upwards momentum that the cryptocurrency had incurred since it surged from its weekly lows of $9,100.
Despite this, the swift rejection at this price level signals that further consolidation is necessary before the crypto continues its ascent.
Josh Rager, a popular cryptocurrency analyst on Twitter, recently discussed the trading range that Bitcoin is currently trading in, noting that it has support around $10,350 and resistance around $10,850.
“$BTC… oh what a tease you are. Daily time frame resistance did its job & price closed under after that $400+ wick. It’s always good to wait for a retest to make sure a broken resistance holds as support & this is a clear example. Neutral at the moment & still in range (chart),” he said.
Analyst: BTC Simply Consolidating Before Massive Surge Continues
Michael Novogratz, a popular cryptocurrency investor and the founder of Galaxy Digital, recently dispelled some investor’s concerns that Bitcoin will soon drop to unrealistic prices, and further added that BTC is currently just consolidating before it moves significantly higher.
“If $btc goes to $100, it is game over. IT WON’T. It’s already established itself as a store of value. Stop wasting your time with these tweets and go outside and enjoy the summer. $btc is consolidating before its next move higher. Let it work for you,” he advised in a recent tweet.
As Bitcoin continues to trade within the aforementioned price range, whether or not it drops below its support level or breaks above its resistance level will likely signal where the short-term trend will take the cryptocurrency next.