For Bitcoin (BTC), despite the fact that past few weeks have proven to be highly bullish, and the aggregated crypto markets, it is important to note that the local highs set by most major digital assets and are looking increasingly like mid-term tops, and bearish trends are slowly regaining control over the markets.
Major Cryptocurrencies have formed an incredibly close correlation with Bitcoin (BTC) over the past several days that means that where the crypto trends next will likely to determine the state of the entire market moving forward.
BTC faces some turbulence with one analyst noting that it is hovering above a key level that, if broken below, that could lead to major losses.
Bitcoin is trading down just under 2%, at the time of writing, at its current price of $8,350 that marks a notable decline from its daily highs of nearly $8,600 that were set yesterday when bulls attempted to spark a rally.
Rejection from this level and inability for bulls to catalyze and sustainable momentum has led the entire crypto markets to similarly fall with analysts closely watching for further near term downside.
A prominent crypto analyst on Twitter, Josh Rager explained in a tweet that he is closely watching to see how BTC responds to its support at $8,000.
He noted, “BTC price was unable to reclaim level and has made its way back toward support. All is not lost, want to see how it reacts at $8k. Be patient, you’ll be happy you stuck around this emotional roller coaster of a market in a couple years”.
Another well respected crypto analyst, Teddy noted in a tweet that Bitcoin is currently on the cusp of looking incredibly bearish, as it has been struggling to hold above the lowest boundary, of a descending channel.
“BTC Quick update: Looks okay but on the brink of looking like … As mentioned about this “bullish” structure is valid as long as support is held above dotted lines – below, ouch,” he noted while referencing the channel seen below.