- Bitcoin has been struggling to find any strong momentum throughout the past few days, with bears rapidly gaining control over its price action
- This trend has not yet been enough to invalidate the cryptocurrency’s technical strength, but it does seem as though it may strike a blow to its macro uptrend
- Until BTC can enter a price discovery mode and break above its all-time highs, there’s a strong possibility that it will soon see some serious near-term downside
- One trader is pointing to a historically accurate indicator that seems to suggest further downside could be imminent
- He notes that a move towards the price region between $ 16,500 and $ 17,500 marks an ideal buy-zone
Bitcoin has been creating shockwaves for the entire crypto market throughout the past few days and weeks, with its inability to set fresh all-time highs causing it to see multiple selloffs and multiple consolidation bouts.
If this trend persists in the mid-term, it could mean that the cryptocurrency is bound to see a stronger decline that ultimately spurs enough buying pressure to spark a new wave of buying activities that send it racing past its highs.
One indicator is suggesting that this price region exists between $ 16,500 and $ 17,500. A break below this region could lead to significantly lower prices, including $ 12,500.
Bitcoin Shows Signs of Weakness as Momentum Fades
At the time of writing, Bitcoin is trading down marginally at its current price of $ 18,300.
Before yesterday’s decline, the cryptocurrency was attempting to gain a strong foothold above $ 19,000. This has marked a pivotal level for BTC in the past.
However, the break below this level led it to see some serious losses, with its decline reaching as far as $ 17,600.
This Indicator Suggests BTC has Yet to Visit Its Key Buy-Zone
One trader explained in a recent tweet that he is closely watching to see how Bitcoin reacts to the price region between $ 16,500 and $ 17,500.
He believes that this is a crucial region to watch, as one indicator suggests that this will be where its descent slows in the mid-term.
“EMASAR buy zone is $ 16,500 – $ 17,500 with the stop at $ 15,900. If that doesn’t hold I’ll be looking to reenter at $ 12,500 – $ 14,000 due to critical weekly levels. That being said I still have 50% of my spot long that I’ll hold as long as structural / trend support holds.”
Image Courtesy of Tyler D. Coates. Source: BTCUSD on TradingView.
Where the entire market trends in the mid-term will depend on Bitcoin, making it crucial that the benchmark crypto gains some near-term momentum and begins rising higher.
Featured image from Unsplash. Charts from TradingView.