After incurring some bullish buying pressure yesterday, Bitcoin has failed to advance past $13,000 and is now nearing the lower-$12,000 region. Today’s drop created a bloodbath in the aggregated crypto markets, sending many altcoins reeling down 10% or more.
Now, one prominent analyst who called today’s drop is noting that it is critical that Bitcoin holds strong above $12,000, or its newfound bullish momentum could be placed in jeopardy.
Bitcoin Faces Increased Selling Pressure as Volatility Ramps Up
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $12,320, which marks a significant drop from its 24-hour highs of $13,100 that were set earlier today.
While zooming out and looking at Bitcoin’s weekly chart, it is abundantly clear that it is still in a firm uptrend in spite of today’s drop, as it has been able to surge from seven-day lows of $10,900 to highs of $13,100, before dropping to its current price levels.
After facing a freefall earlier this morning, BTC has been able to slow its descent and appears to be incurring greater levels of buying pressure at its current price levels.
Analysts are now noting that $12,000 is a key support level that Bitcoin must hold above in the near-term or else significantly further losses could be imminent.
Chonis Trading, a popular cryptocurrency analyst on Twitter, spoke about this level in a recent tweet, explaining that a hold above this aforementioned level is key for continuation of the recent bull trend.
“$BTC – support has been found right at the last point where it could to keep this bullish count still valid. Keeping #bitcoin over $12K is now paramount for continuation,” he noted.
If Bull Run Continues, BTC Could Surge Towards Six-Figures
If the bull trend that Bitcoin is currently caught in continues to extend further, analysts are noting that it could continue onwards and upwards towards the coveted six-figure price region, which would mark a massive surge from its yearly lows of $3,400.
Galaxy, another popular cryptocurrency analyst on Twitter, mused this possibility in a recent tweet, explaining that the 2015 fractal pattern elucidates that a six-figure price surge could be a real possibility.
“The $BTC Bull Run barely even started. According to 2015 fractal, the road to #6digits was confirmed when we broke $10K. It will be a journey packed with FUD, bans, hacks and all sorts of manipulations. But nothing worth having comes easy, especially financial freedom,” Galaxy explained.
Although at the moment it feels as though Bitcoin is resting on the edge of a precipice, its robust technical strength and current upwards momentum – should it be maintained – will likely lead it significantly higher in the coming weeks and months ahead.