Bitcoin has been trading predominantly sideways over the past few days with its general direction, unfortunately, heading down, back towards the critical resistance floor of $10,000. The major cryptocurrency coin tipped $10,600 but quickly fell to a bearish zone which has traders expecting a sell-off.
Last week, Bitcoin looked to be heading towards $11,000 and potentially onto a new bull run, however, the price has stayed lower in its weekly trading range since the beginning of this week, having risen as high as $10,900 last Friday.
That bullish spike, which took Bitcoin $1,500 higher last week has failed to kick on, with a drop seeing lows of almost $10,000 on Monday. With these factors considered, traders are predicting a potential fall even lower as the coin hovers around $10,200 currently.
Easiest way is down
Alan Masters, a trader on TradingView has explained that the charts are showing signals of a potential sell-off and that the most obvious route for the dominant cryptocurrency is further losses.
Bitcoin can easily move lower... According to the signals coming from the chart above. My last analysis showed that the signals were weak and that Bitcoin could move down since it was rejected for the fourth time by strong resistance, he said.
As Bitcoin looks to head back towards the $10,000 mark, it appears to be stuck in a selling situation. There is a bit of resistance being met at the $10,500 mark where Bitcoin’s price continues to face an increase in selling interest below that point. It appears, ss long as the price is trading below the $10,500 level, there are chances of more downsides. However, the longer-term view is more positive, and if the price can get above $10,500, Bitcoin could surge towards the $11,000 level.
Long term view more positive
While Bitcoin continues to struggle in the short term, there is no real panic as the coin is still viewed as on the up, especially year to date. Bitcoin began the year closer to $3,000 and now overs above $10,000 with the network itself never looking healthier.
The network hashrate, which is an indicator of mining and validation interest in Bitcoin, has recently crossed a new milestone of 100 quintillion hashes per second as the hashrate continues to break new records.
While hashrate is separate to general market features, it is often seen as a good sign for a cryptocurrency and has a close correlation with the price. If the hashrate keeps rising, it is expected that the price will follow in the longer run.