- Bitcoin has been moving back and forth in recent days, with bulls building a strong support base in the region below $13,000, while bears are having difficulty gaining momentum.
- This support could help catapult BTC higher in the short term – but the slight rejection seen yesterday at $13,600 suggests that a downward movement may be imminent.
- There is a technical indicator that suggests that some deterioration may be imminent.
- An analyst writes about this in a recent tweet, commenting that a decline towards $12,500 could take place before Bitcoin rises higher.
Bitcoin has been in a relentless consolidation phase since it lost momentum after being rejected at $13,800.
This level has historical significance, as it happens to be the place where the rally of the crypto currency came to a bitter end in 2019.
The resistance here, coupled with a sudden rise in the value of the US dollar, caused BTC to plummet to $12,800 before finding serious support, which brought it back to where it is currently traded.
Where it goes in the coming days and weeks will depend largely on whether or not it can continue to be traded above $13,000.
One analyst notes that one indicator suggests that a move to $12,500 may be necessary before BTC can see further uptrends.
Bitcoin consolidates after recent rejection
At the time of writing, Bitcoin is quoted at a price of USD 13,750. This is a huge chunk above the range in which it has been traded in recent days.
Earlier this week BTC recovered to $13,800 before losing momentum and slipping to $12,800.
Buying pressure here was intense and triggered an almost instantaneous rally.
The asset has a long way to go before it is back in solid bull territory, as the resistance it faces is quite strong.
Indicator: Is a decline towards $12,500 imminent?
Regarding the question of where Bitcoin might go next, one analyst explains that the so-called Renko chart suggests a move towards $12,500. He writes:
„The same BTC structure is in place at Renko, and we still haven’t had the ‚playout‘ for the divergence. After these strong runs, we are still looking for $12,500 in line with the previous downtrends. Traditional markets are paving the way.“
As Altcoins have bled out in the course of Bitcoin’s consolidation, a potential decline to $12,500 could trigger a further wave of surrender of smaller tokens.