- Bitcoin’s price has been sliding lower throughout the past few hours due to its stalling momentum
- This decline is occurring directly following an incredibly bullish weekly candle close posted by the cryptocurrency
- Analysts believe that this close will provide it with some serious strength going forward, potentially putting a firm end to its recent downtrend
- It is important to note that there is a CME gap that exists around $11,100, which may act as a magnet that pulls BTC lower
- Once filled, however, the support around this price level could be enough to propel Bitcoin significantly higher
Bitcoin and the entire cryptocurrency market are currently caught within yet another consolidation phase. This comes just days after they experienced some intense upwards momentum that put an end to the previous bout of sideways trading.
BTC’s recent upswing led it to highs of $11,400, which is around where its rally lost its momentum, and its price began sliding lower.
The next key resistance level for the cryptocurrency sits around $11,600, although it has yet to be tested.
One analyst recently shared his thoughts on Bitcoin, noting that the recent weekly close was incredibly strong, adding that he sees no reason why BTC can’t reach $12,000 this week.
Bitcoin Struggles to Maintain Momentum as Price Inches Lower
At the time of writing, Bitcoin is trading down just under 1% at its current price of $11,290. This marks a slight decline from recent highs of over $11,400.
Where the entire market trend next will likely depend largely on Bitcoin and whether or not it extends this slight downwards momentum.
It is possible that BTC will continue declining until it reaches the CME gap it formed during its latest upswing, which sits around $11,100.
Analyst: Strong Weekly Close Indicates Move to $12k is Imminent
Bitcoin may be positioned to rally towards $12,000, one analyst believes.
He points to the strength of the cryptocurrency’s recent weekly candle close, noting that there’s no reason for its price to face any immense turbulence in the days ahead.
“BTC: Heck of a weekly close for Bitcoin. Price is back up in previous range prior to breakdown and personally, I don’t see why we can’t see $12k this week. Take it day by day, level by level,” he said while pointing to the below chart.
Image Courtesy of Josh Rager. Chart via TradingView.
Bitcoin is currently guiding the entire crypto market and is likely to continue doing so in the week ahead. This makes its price action crucial for understanding that of altcoins as well.
Featured image from Unsplash. Charts from TradingView.