After almost touching $11k on Friday, the price of bitcoin took a turn for the worse over the weekend as the price sank below £10.5k in just two days. This was a six percent loss against the US dollar.
When the BTC price made its way to $10.9k many technical analysts believed that the asset would start testing new waters from $11.4k to $12k.
Last week, on September 3rd, the technical analyst and crypto trader DonAlthighlighted that bitcoin has been moving in between a large range since July.
With bitcoin testing $12.6k as a regular occurrence from July the middle of August, the leading cryptocurrency has shown signs of struggle in hitting the $11k mark.
DonAlt sent out a tweet that suggested BTC is more than likely to range throughout the foreseeable future and whichever support or resistance that breaks first is likely to determine the short term direction of the dominant.
On Twitter, DonAlt said:
“Seems like a lot of people felt the same way.
Both shorts & longs stacked & once it moved back above $10000 a squeeze followed.
Daily candle took us straight from the bottom to the top of the range.
Both 9k and 12k are old levels, whichever breaks first decides direction.”
Before we go any further though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
The prominent crypto trader and the inventor of hashcash, Adam Back has said that when bitcoin halves in 2020 and increasing uncertainty in the international economy could also lead to an increase in interest towards the leading cryptocurrency.
“Bring it on, 2020 halvening, lots of geopolitical uncertainty, $15tril of -ve interest bonds, MMT excuses being tested to bring an even more imprudent USD inflation regime.”
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!