- Bitcoin has been inching lower throughout the past few days and weeks, with buyers and sellers both being unable to take control of its near-term trend
- This slight decline has come about following a period of immense strength and stability as it consolidated above $16,000
- If it continues trading below this level, its recent $16,500 highs could mark a long-term top
- Where it trends next may depend on one key support level that an analyst is closely watching
- This price action could prove to be beneficial for altcoins, however, as many tokens are currently rocketing higher despite BTC’s pullback
- If this trend persists, then this could mark the start of the next “altseason” – where investors move money away from the larger digital assets and towards higher risk ones
Bitcoin is in the process of reeling lower today, with sellers gaining an edge over buyers as the support at $16,000 shows signs of dissolving.
Where BTC and the rest of the market trends next will likely depend on tomorrow evening’s weekly candle close. If it can surmount this level and close above it, bulls could regain control of its price action.
One trader believes that a continued bout of consolidation could bode well for altcoins, potentially allowing them to continue rocketing higher.
Bitcoin Hits Critical Support Level
At the time of writing, Bitcoin is trading down just over 3% at its current price of $15,820. This marks a notable decline from recent highs of $16,500 set at the peak of its recent push higher.
This decline has sent it down to its key support at $15,800, which is a level that has long been watched by analysts and investors as a key support level.
If broken firmly below over any higher time frame, it could be a sign that downside is imminent.
Analyst: Altcoins Looking Strong Despite BTC Weakness
One analyst observed that altcoins are looking strong despite the declines seen by ETH and BTC today.
He also notes that Bitcoin is now trading above a crucial high time frame support level.
“$15,800 crucial support for BTC HTF… If it breaks, expecting a pretty significant pullback across the board, ETH is also at key support here at $460 currently. That said, lots of alts are still looking good today…”
Image Courtesy of Cactus. Source: BTCUSD on TradingView.
The coming few days should provide insight into the long-term significance of this move. Where it trends next may depend largely on its weekly candle close tomorrow.
Featured image from Unsplash. Charts from TradingView.