- Bitcoin corrects lower after hitting a year-to-date high of $12,400
- Analysts are not impressed with the current price action of Bitcoin
- Bitcoin might return to the $11k region
Bitcoin News Today – The price performance of Bitcoin (BTC) over the past twenty-four hours has not been really impressive. After hitting the high of $12,500 on Monday, the price action of the world’s most dominant digital currency has reversed
At press time, Bitcoin is changing hands around $11,700, which is a decline of about $700 from its recent yearly high. A few hours ago, the digital currency was even as low as $11,600, which means it plunged by about 7 percent from its local highs of $12,400.
Bitcoin (BTC) Price Today – BTC / USD
Analysts Believe Bitcoin Is in a Tough Spot after 7% Drop
When the price of Bitcoin surged higher on Monday, many analysts and traders were optimistic about what would come next for the digital currency. The $12k mark was a major hurdle for the digital currency then, and the digital currency was rejected at that point several times. However, the fate of the digital currency changed rapidly as it plunged below the $12k mark during the correction on Tuesday, which even extended to Wednesday.
Many analysts are not happy with the current price action of the benchmark digital currency. One crypto analyst said that the failure of Bitcoin to hold $12k sets the stage for a plunge towards the $11k range. The analyst said:
“$BTC Took out the high, then dumped pretty aggressively. Looks good to test $11070 one more time to me. If it however reclaims the red line ($12100) on a closing basis I think it’s good for another $1000 candle up. Bears got a pretty neat invalidation here.”
Another digital currency analyst, who predicted the current price action, also said Bitcoin might return to the $11k region. At the beginning of this year, this same analyst predicted that the price of Bitcoin would plunge to the $3k region, with XRP likely to move to between 11 cents and 13 cents. Bitcoin bulls would need to hold gains over the $11k mark, and then make a move towards the local highs to confirm that the uptrend remains intact.
Bitcoin’s Correlation with Gold might Cause More Dips in the Near Term
The legacy markets are not looking any better than the digital currency market. Via a comment, the head of technical analysis at Blockfyre, a digital currency research company, said:
“Looking at Legacy. Look at all that volume for that little Doji. Lots of selling that happened at the highs Followed by this bearish engulfing on the daily. Gold’s rally looks to be done short term too. I think we have short/midterm reversals being printed in ALL markets $BTC.”
A decrease in the value of gold and/or the stock market would likely push the price of Bitcoin lower. This is because Bitcoin has formed a strong correlation with gold over the past couple of months.