Bitcoin prices have declined over roughly the last 24 hours, falling back after reaching a recent high of more than $12,000 yesterday on CoinDesk.
After dropping to as little as $11,217.45 earlier this morning, the digital currency has been trading between $11,200 and $11,500, additional CoinDesk figures show.
In light of the cryptocurrency’s recent retracement, several analysts offered some perspective on where the price of bitcoin will likely go next.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
“Bitcoin has a strong support at $11,000, followed by $10,500 and then $10,000,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital.
“If $10k is broken we may see a real downtrend,” he stated.
“But as long as the price stays around current levels, bullish sentiment is likely to prevail.”
Kiana Danial, CEO of Invest Diva, also weighed in, speaking to potential bearish price action for the cryptocurrency.
“$11,235 is the neckline of the head and shoulder chart pattern Bitcoin is forming at the moment,” she stated.
“A confirmation of a break below this level could open doors for further drops towards $10,400,” added Danial.
“Otherwise, we could expect the BTC/USD pair to consolidate between $12,400 and $11,235 until it finds a new direction,” she stated.
Jon Pearlstone, publisher of the newsletter CryptoPatterns, also chimed in.
“Bitcoin reversed yesterday’s gains with strong volume and is now below yesterday’s closing price,” he stated.
“These are often indicators of price rejection which often bring more significant corrections,” said Pearlstone.
“That said price is still well above important resistance levels,” he added.
“Important levels of support to watch on the current pullback are $10,500 and $9,500,” said Pearlstone.
“Price could fall much further if we see $9,500 break with strong volume, but until those resistance levels break down convincingly, Bitcoin continues to consolidate within the range.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.