Bitcoin is currently trading at little over $9,200, a long way off from its all-time of nearly $20,000 achieved in mid-December. The cryptocurrency’s decline, according to CNBC, is now worrying chart analysts who can seemingly only agree that bitcoin’s next move is going to be a dramatic one.
According to Nomura Instinet executive director Frank Cappelleri, the number one cryptocurrency failed to break above a ‘key level’ at $12,000 earlier this week. For it to once again reach new highs, it must first pass $11,500, and then $14,300.
“Longer term, bitcoin is now back below a key uptrend line. The last time it tested this support line, demand flooded the cryptocurrency. If that doesn’t happen again soon, the February lows would in the cross-hairs.”
Bitcoin hit a weekly low of $8,370 after a series of events turned the market bearish. One of the largest cryptocurrency exchanges, Binance, recently had to suspend trading and withdrawals while fending off a large theft attempt.
Moreover, Japan’s Financial Services Agency (FSA) ordered the suspension of two cryptocurrency exchanges for a month, citing poor security and compliance standards. Finally, Mt Gox trustee Nobuaki Kobayashi revealed he sold about $400 million worth of bitcoin in the past few months.
Per J.C Parets, president and founder of All Star Charts, bitcoin is now stuck between $7,400 and $11,900. He said:
“I don’t want to be buying dips. I want to be buying this on the way up. In other words, for now if we’re not above $11,900, this is a ‘no touch.'”
Bitcoin may bounce back
Although most chart analysts point out the cryptocurrency currently has a few challenges ahead, some see a silver lining developing. Robert Sluymer, a technical strategist at Fundstrat Global Advisors, pointed out that the area from around $8,076 to $8,773 may be becoming a support.
This means that around this area buyers are likely to get in, which can help the market turn green. Either way, technical analysts seem only to agree that bitcoin’s next move may be a dramatic one.
Chris Kimble, founder and CEO of Kimble Charting Solutions, made it clear:
“Bitcoin finds itself near the apex of a narrowing pennant pattern. These patterns don’t give odds per which direction the asset will take. They do suggest a BIG move is ahead.”