This Technical Indicator Suggests Bitcoin Has Formed a Local Top

  • Bitcoin’s price is seeing a slight consolidation phase as it trades around $13,000
  • The selling pressure around $13,200 has proven to be significant but bears inability to spark any significant retrace points to some weakness amongst sellers
  • If bulls can provide BTC with a strong foothold within this price region, there’s a strong chance that serious upside is imminent
  • One analyst explained in a recent tweet, however, that a technical indicator is suggesting that the crypto has formed a local top
  • This could indicate that further consolidation, or a slight retrace, is imminent

Bitcoin and the rest of the crypto market have been struggling to extend the recently incurred momentum due to BTC’s resistance in the lower-$13,000 region.

This only marks consolidation on a micro-scale, but it is important to note that a continued bout of trading beneath this level could strike a blow to buyers’ current strength.

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Where the entire crypto market trends next depends entirely on Bitcoin.

This could mean that some downside is imminent, as one analyst explained in a recent tweet that a historically accurate indicator is now suggesting that a retrace is imminent before BTC sees further gains.

Bitcoin Consolidates at $13,000 as Bears Guard Against Further Upside 

At the time of writing, Bitcoin is trading up marginally at its current price of $12,990. This is around the price at which it has been trading throughout the past 24 hours.

Bears have been ardently trying to stop BTC from gaining a firm foothold within the lower-$12,000 region.

It remains unclear whether or not the selling pressure here will continue halting its momentum as the weekend fast approaches.

Indicator Suggests BTC has Formed a Local Top

It is important to note that there is one indicator suggesting that Bitcoin has formed a local top, signaling that a move down to the lower-$12,000 region is imminent.

One analyst spoke about this in a recent tweet, pointing to BTC’s Emasar indicator while putting forth a downside target around $12,200.

“Emasar is signaling a local top on BTC. Above $12,700 looks like a good place to take some profit. I have orders to rebuy from $11,777 – $12,226,” he said.

Image Courtesy of Tyler D. Coates. Source: BTCUSD on TradingView.

How the market continues trending in the coming few days should provide investors with serious insights into Bitcoin’s mid-term outlook.

Featured image from Unsplash.
Charts from TradingView.

 

source: https://bitcoinist.com/this-technical-indicator-suggests-bitcoin-has-formed-a-local-top/?utm_source=rss&utm_medium=rss&utm_campaign=this-technical-indicator-suggests-bitcoin-has-formed-a-local-top

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