August 14, 2020
Bitcoin has been wedged under $12,000 for the last few weeks, with the intense selling pressure here reducing the momentum that it established since late-July.
Each effort to go above this price region has caused the crypto facing a sharp rebuff that indicates its price down to its support at $11,200.
This level has held sturdy over the last week, with buyers enthusiastically protecting against a dip below it.
That being understood, one analyst is now observing that the vital liquidity region he is carefully watching sits within the lower-$10,000 areas.
According to him, this may be where BTC has to decline before it can gather any solid uphill momentum. The benchmark cryptocurrency may soon post some significant losses if this is the situation. This can strike a heavy blow to investor sentiment.
Bulls and Bears Reach an Impasse while Bitcoin Consolidates in Mid $11,000 Region
As of now, Bitcoin is trading down just under 1% at its present price of $11,485. This is about where it has been trading throughout in the recent days.
The cryptocurrency faced a rebuff when it tried to break $12,000 last Saturday. This made the price consequently go down to $11,200.
Consumers have been eagerly protecting this level over the time since, with each break below it being swiftly bought. Because of this, BTC has a chance of slight momentum. Its price is steadying within mid-$11,000 regions as both buyers and sellers tussle to gain control of its short-term to mid-term trends.
These two levels mentioned above also represent the upper and lower boundaries of a trading range that it is currently caught within. It is impossible to forecast where it will trend next until it breaks above $12,000 or below $11,200.
This Liquidity Pool May Lead BTC’s Price to $10,000
Assets like Bitcoin pursue liquidity. One of the significant liquidity pools that the cryptocurrency may need to visit before pushing the upper is $10,000.
One well-known analyst spoke about this in a recent tweet, saying:
The same analyst further emphasized that Ethereum could be the influence that invalidates this possibility, as an ETH breakout could pull BTC higher.
“The counter would be ETH pulling it up if it breaks out, but ETH’s pump narrative was DeFi demand, no? With ETH becoming much more costly to use, will it still be in heavy demand?”