Bitcoin has been on a recovery trend after falling below $100,000 last weekend. The break of this psychological level was no doubt a demoralizing development. However, the largest cryptocurrency by market cap has since recovered, pushing toward $108,000 before hitting resistance. This resistance has become a major obstacle in the campaign for new all-time highs, and with momentum declining at this level, it carries some bearish implications for the price.
Bitcoin Resistance Says Crash Could Be Incoming
In a TradingView post, crypto analyst FirstNameHelen, outlined the resistance level that Bitcoin has failed to beat and that is now driving the bearish momentum. The analyst highlights $108,200 and $108,800 as the levels of concern, and this is where there has been significant resistance for the Bitcoin price.
This level has previously been the ceiling for the price, according to Helen, and this is why it has been important. However, the retest in a bid to break above the resistance has been unsuccessful, and this suggests that bears are still firmly in control of the price.
After this pushdown, the Bitcoin price has consolidated below the support level in the last few days. While this could sometimes mean a gathering of momentum to facilitate the next move upward, the crypto analyst explains that this means there is hesitation in the market. Since investors are not willing to move forward and remain cautious, the potential for a bearish reversal is increased as pressure rises.
The possibility of the reversal points to only a short-term rally and not a sustained move upward that could see the price reach new all-time highs. Unless the price sees a definitive break through the resistance and makes its way into the $110,000 level, then it is likely to continue its decline.
In light of the piling bear pressure, Helen has predicted that the price could move downward toward the next support level. This lies at $103,000 as the corrective wave moves into motion. It also coincides with the declining trendline from the mid-June peaks.
If this weekend plays out similarly to last weekend, then the Bitcoin price could be looking at another major crash that could send it below $100,000 again. A 10% crash would see a retest of its June lows, especially as uncertainties about the war in the Middle East abound. However, if momentum does rise again, then a breakout could be possible.
At its current price level, the Bitcoin price is only around 5% shy of breaking its all-time high of $111,900. Meanwhile, the altcoin market continues to struggle as prices sit at low levels.
Featured image from Dall.E, chart from TradingView.com
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