- Bitcoin has struggled to find strong momentum in the past few days and the bears quickly took control of their price movements
- This trend has not yet been enough to invalidate the technical strength of the cryptocurrency, but it does seem like it will hurt the macroeconomic uptrend
- Until BTC can enter a pricing mode and surpass its all-time highs, there is a great likelihood that it will soon see serious short-term downward moves
- A trader points to a historically correct indicator that suggests another downtrend is imminent
- He notes that a move towards the price region between $ 16,500 and $ 17,500 is an ideal buy zone
Bitcoin has shocked the entire crypto market in the past few days and weeks as it has been unable to hit new highs, resulting in multiple sell-offs and multiple consolidation battles.
If this trend continues in the medium term, it could mean the cryptocurrency will see a bigger decline, which will ultimately create enough buying pressure to trigger a new wave of buying activity that will send it racing past its highs.
An indicator suggests that this price region is between $ 16,500 and $ 17,500. A break below this region could result in significantly lower prices, including $ 12,500.
Bitcoin shows signs of weakness when momentum wears off
At the time of writing, Bitcoin is trading marginally at its current price of $ 18,300.
Before yesterday’s decline, the cryptocurrency tried to break into over $ 19,000. This has been a crucial point for BTC in the past.
However, breaking below this level resulted in some serious losses, the decline of which reached as high as $ 17,600.
This indicator suggests that BTC has not yet visited its main buying zone
A dealer explained In a recent tweet, he closely watches how Bitcoin reacts to the price range between $ 16,500 and $ 17,500.
He believes this is an important region to watch as an indicator suggests the decline will slow in the medium term.
“The EMASAR buy zone is 16,500 to 17,500 US dollars, the stop at 15,900 US dollars. If not, I will try to re-enter at $ 12,500-14,000 due to critical weekly levels. That being said, I still have 50% of my space that I will hold as long as structural / trending support is in place. “
Image Courtesy of Tyler D. Coates. Source: BTCUSD on TradingView.
Where all market trends depend on Bitcoin in the medium term, it is crucial that the benchmark crypto gains momentum in the short term and rises higher.
Featured image from Unsplash. Charts from TradingView.