The price of bitcoin has gone down by 8.27 percent in the previous twenty-four hours, according to data provided CoinStats’ crypto portfolio tracker.
The BTC/USD instrument on Monday fell as low as $10,866.9 during the early Asian session. The pair later attempted a small upside recovery but that, too, came on low volumes. The move showed sluggishness on the part of bulls, indicating that a near-term scenario for bitcoin was on the way downwards.
The intraday loss reduced bitcoin’s weekly gains to 4.07 percent from a double-digit percentage noted until Wednesday. Eventually, the cryptocurrency’s market capitalization also came down to $198 billion from the weekly top of $245 billion.
Bitcoin Technical Analysis
As of late, the bitcoin price is trending inside a bear pennant, as shown in the chart below.
The price has just tested the support of the pennant formation. A rebound is underway, which could see bitcoin retest the local top of $11,425 either today or tomorrow. An improved buying scenario could lead the price towards the upper trendline of the pennant formation – the resistance. Upon testing it, bitcoin could attempt another pullback, this time to the downside.
While one places their trades, it is also advisable to maintain a risk profile. That said, a stop loss 1-pips above the resistance would protect a short position and a similar position below the support would protect a long entry.