Bitcoin price may soon see a reversal of its downtrend while its social volume indicator is spiking
Yesterday and today (not sure if there are any more days to come) has been a difficult time for Bitcoin. Bitcoin price has dropped significantly, from the lower zone of $ 11,000 to its low of $ 10,300 earlier today.
Bitcoin price stabilized in the region averaging $ 10,000 following the recent chaos
During this time, Bitcoin has shown some signs of stability as buyers attempt to regain control of the price outlook in the short term. Even so, Bitcoin remains in a somewhat precarious position following this latest move, as it has yet to regain significant support at $ 11,000 – a level that was lost due to this drop.
If this level is tested and confirmed as resistance, there is a chance Bitcoin will continue to decline significantly before the bulls can push it higher.
Elsewhere, there is some data regarding activity among Bitcoin investors, indicating that the market-leading cryptocurrency is about to experience a trend reversal in favor of a bullish trend.
At the time of writing, Bitcoin is trading down almost 10% at its current price of $ 10,299. It is important to note that the price zone between $ 10,400 and $ 10,500 was seen as strong support over the past few hours. This level will likely act as a springboard for further bullish momentum in case the bulls continue to defend it.
The latest slump has far-reaching implications for the crypto market. Because it causes the altcoin market to plunge when sellers try to get out of profitable positions. However, the sell-off is showing signs of slowing down, and recovery is probable in the short term.
Bitcoin’s popularity in the media suggests that BTC is likely to be reversed
According to analysis from Santiment, Bitcoin could soon reverse its downtrend as Bitcoin’s exposure to the media is spiking. This is what happened historically at key times for the short term trend of BTC.
The report from the company said:
“BTC has hit its highest social volume in 16 days as traders polarize on whether the ‘dump has just begun’ or the ‘dip buy opportunity’ has finally arrived. These social spikes typically represent short-mid term price direction switches.”
They explain that these spikes often represent short-term price directions in the medium term. If Bitcoin reverses its downtrend, monitoring its response to $ 11,000 will provide insight into its medium-term outlook.
Read more:
- Bitcoin Price Failed To Gain Pace Above The $12,000 Resistance Level, And Started A Sharp Decline
- Here Are Three Reasons Why Bitcoin Price Tumbled Nearly 10%, Falling Below $11,000 For The First Time In A Month