One analyst commented that BTC breaking below $10,600 on a weekly time frame could trigger one such retracement. $10,600 is important to Bitcoin as prices in that general vicinity have marked three previous tops to medium-term rallies.
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Bitcoin Needs to Hold $10,600 Moving Forward
“No matter how good (or bad) the low timeframes look, the $10.6k area is still one of the most important areas on the chart. This week closes below it? I’ll assume top is in and we’ll trade towards $8k. We close above it? I’ll close shorts and see what happens next.”
Chart of BTC's price action since the setart of 2019 with a range analysis by crypto trader DonAlt (@CryptoDonAlt on Twitter). Chart from TradingView.com
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May Be Tough to Hold
On a shorter-term time frame, the same trader is also bearish, pointing to clear technical pressure around the $11,000 range.
He wrote on recent price action:
“Closed the rest of my adds for an avg. gain of $150, I wanted to see a strong breakdown, doesn’t look like I’m going to get it and I’ll be out tonight, so can’t monitor. Looks like there will either be better opportunities later or safer opportunities lower down.”
Othres have also noted that theres’ a good likelihood that Bitcoin tops in the current range due to it acting as a point of historical support in August.
For instance, the number of corrections that took place throughout August all ended in the $11,000-11,300 band. Bitcoin failing to reclaim that level may confirm expectations of a bearish retracement back towards range lows at $10,000.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com A Rejection At This Level Could Result in Bitcoin Falling to $8,000