Top Trader Weighs In on Bitcoin (BTC) Price Downturn
Bitcoin, the leading cryptocurrency, retraced steps from its 18-month peak, stirring a mix of cautious optimism and market skepticism.
The digital currency, which had seen a substantial uptick in the past months and a crescendo above $38,400, experienced a slight pullback, sparking debates on the future trajectory of its value.
According to technical analysis from seasoned trader Scott Redler, Bitcoin has failed to gain a footing above the key resistance level at $38,000. CoinGecko data shows that Bitcoin is currently trading at $37,041.
Momentum meets resistance
Bitcoin's ascent to over $38,000 was a headline-making event that was marked by investor enthusiasm and positive market sentiment.
However, as Redler's analysis suggests, this peak proved difficult to sustain. Despite the recent drop, the underlying momentum hasn't waned entirely.
Market analysts point to the significant volume of trade and a steady hold above the $30,000 mark as indicators that Bitcoin is not yet ready to surrender its gains.
The critical support
According to Redler, traders should stick to strategic planning. Active traders are advised to consider adjusting their stop to $34,900 to manage risks in this volatile market.
The current pattern suggests a series of support and resistance levels that have been tested over time, with $28,100 emerging as a critical support in the recent rally.
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