Bitcoin price fell sharply on Saturday after failing to break beyond $11,000. | Source: Shutterstock
The bitcoin price abruptly dropped by more than five percent $10,949 to $10,204 in the past 24 hours at a point which technical analysts described as a critical moment for bitcoin.
As the bitcoin price initially made its way to $10,900, traders anticipated the dominant cryptocurrency to break out of a crucial resistance level and potentially retest $11,400 with the possibility of it rising to $12,000 in the short term.
However, similar to how bitcoin reacted when it tested $10,900, the asset immediately broke down to the low $10,000 region, unable to cleanly climb over a range that has been regarded as heavy resistance since early August.
Where is bitcoin likely to test next?
Some traders have started to indicate the likelihood of bitcoin testing the $9,000 region before it rebounds as it did in the last week of August.
Josh Rager, a cryptocurrency trader, said that as BTC fell, $10,900 turned into a resistance level and it could demonstrate a short term downside movement to the $9,000 region. But, Rager said that he intends to enter if it goes below $9,000, suggesting that if BTC drops to lower support levels, it is likely to recover swiftly.
“BTC Looks like price has flipped support to resistance on the 4 hours. Will continue to watch how this plays out – but I’m not worried and will certainly be a buyer if Bitcoin trends back down towards $9k,” he said.
Cred, a cryptocurrency technical analyst, said earlier this week prior to the test of BTC at $10,900 that charts suggest the upward movement could be a trap.