Bitcoin appears to be stuck under $ 12,000. Previously, the cryptocurrency had seen an incredibly strong uptrend that had taken it from lows of $ 9,000 to highs of $ 12,000 in just a few weeks. The ongoing phase of consolidation in the cryptocurrency suggests that buyers may not have enough buying pressure to break the resistance that is right above where the currency is currently being traded. It could also indicate buyers are losing their momentum. Nonetheless, BTC is still only a hair away from closing above a crucial level that could allow the coin to “teleport” towards $ 13,000.$ 12K insurmountable?
Bitcoin is showing increasing weakness
It is important to take into account that BTC is currently in a consolidation phase lasting several days – immediately after being caught in a strong uptrend. This is not an uncommon occurrence within bull markets, and BTC could drop even lower while maintaining its market structure. The crucial level that buyers will have to defend going forward is $ 10,500. That level of resistance had remained strong for almost a year. Should it fall below this level, it could undo the strength Bitcoin has suffered in recent weeks. At the moment it doesn’t seem like any kind of sharp downtrend is imminent as every slump in the past few days has been quickly absorbed by buyers.