Bitcoin Breaking Below These Two Levels May Suggest The Bull Trend Is Over

Bitcoin has slipped over the past 72 hours. After peaking at $12,500 on Monday, the asset has slipped lower and lower, now trading for $11,450. This isn’t much than it was just a week ago, but analysts have begun to mark out important levels as the downtrend may persist.

One cryptocurrency trader shared the chart below on August 21st. Along with showing the recent price action, it shows important levels for BTC to hold moving forwar

Per the trader Bitcoin must hold both $11,000-11,200 and $10,600 to maintain the bull trend:

“Levels to watch on $BTC if we continue dropping: $11.2-11k and $10.6k. Should these two major supports be broken then it could signal a shift in trend in the medium to long term. So far $11,000 hasn’t been raided in the past few weeks.”

Another analyst has pointed to the low-$11,000s as an important level for Bitcoin to hold. One noted that there is “heavy support” in that region due to the consolidation BTC saw in that region earlier this month.

$10,500 Could Hold, Technicals Suggest

Even if $11,000 breaks, analysts have some confidence that the $10,500 level will hold.

For reference, that specific level is one of macro importance to Bitcoin. As readers are likely aware of, $10,500 was a level at which three separate BTC rallies topped at: one in October 2019, one in March 2020, and once in June of this year.

It already held once during this rally, with a flash crash bouncing right above $10,500. The level is likely to hold for a second time should Bitcoin test the level due to the Ichimoku Cloud technical indicator.

Another trader shared this chart on August 21st. It shows that the Ichimoku Cloud’s “Kijun” line sits at $10,600 at the moment.

Source: bitcoinist.com