Once again, Bitcoin has gotten into another consolidation phase. This time, it consolidates at $9,200. Moreover, it reestablished its position within its former range: from $9,000 to $9,300. An analyst says it could be bearish if Bitcoin break below $8,600.
Bitcoin’s recent price action did not offer clear and significant insight into its macro outlook. Currently, it is still stuck within its long-established range between $9,000 and $10,000.
The cryptocurrency will still remain stuck strongly within a prolonged bout of sideways trading until one of these levels finally break.
People are giving thoughts on where Bitcoin could trend next. One analyst said that he is expecting the $9,000 level for insight into its middle-term trend.
He emphasizes that if Bitcoin breaks below this support, it could experience a multi-month low of $8,600. He further says Bitcoin could have a decline below this level, giving way to a “nasty price action” that could cause it to have a far-reaching selloff.
Bitcoin Consolidates at $9,200; Analyst says he sees a leg down towards $8,600
Throughout the past two months, both bitcoin buyers and sellers have been unable to grasp solid control of the benchmark cryptocurrency’s midterm trend.
The consolidation phase first began in May. By the look of it, there is no sign that it would slow down soon. Furthermore, there seem to be no near-term catalysts that would help break this trend.
The trading range where Bitcoin has been stuck has been narrowing as well.
At the moment, Bitcoin is trading down roughly 1% with its current price, $9,225. This is around where it has been lingering in the time succeeding its recent rejection at $9,500.
This rejection turned out to be grave for Bitcoin’s outlook. Moreover, it indefinitely stopped the immense rallies posted by many major altcoins throughout the past couple of weeks.
An analyst stated that he thinks Bitcoin is on the verge of having a leg down towards $8,600. However, this chance would be nullified if Bitcoin rises towards $9,500.
The Level that could Spark a “Nasty” Bitcoin Selloff
If Bitcoin goes down to $8,600, its reaction to the support here will have a big role in determining where it trends next.
Recently, a notable analyst explained on his blog post that if Bitcoin breaks below $8,600, it would lead it in strong bear territory and would send it reeling lower.
Bitcoin’s hovering weekly close may be one of the factors that helps activate some trend-defining volatility in the near-term.