Bitcoin Bears Try To Spark Downside While It Tests Key Parabolic Level

Bitcoin bears try to spark a downside while the benchmark crypto is testing a key parabolic trend line while struggling to maintain its immense momentum after the multiple rejections seen at $16,000 so let’s give a look at the Bitcoin price analysis.

BTC is now consolidating in the lower $15,000 region with the bulls having a hard time holding it above the levels as it continues to drift lower. It did see a sharp rebound from its overnight lows of $14,800 that was set during yesterday’s selloff with support being significant. With that being said, the multitude of rejections at $16,000 hasn’t done anything good for the short-term outlook so until it is able to break above this level, it could be positioned to see more weakness in the short-term. this comes as it tests a crucial parabolic trendline that was formed over the past few months.

The bitcoin bears started pulling downwards as BTC was consolidating over the past few weeks with the selling pressure at $16,000 so far proving to be too much for the buyers. Until this level is broken above, the bulls could be plagued by underlying weakness and it could see a prolonged consolidation phase. This phase could favor other altcoins and many are already catching up major momentum while Bitcoin stagnates.

One analyst noted that Bitcoin is now testing a key parabolic trendline but it is imperative that this is defeated or the bears could bring it down. At the time of writing, Bitcoin was trading down by under 1% with a current price of $15,200. This marked a notable decline from the daily highs of $15,500 that was set overnight. Since reeling down to lows of $14,800 and rebounding back above $15,000, the crypto asset has mainly been consolidating. Until it can break this consolidation phase and shoot higher, the attention could start drifting to other altcoins especially in the DeFi space.

Today, YFI’s token and other Defi tokens were trading up with many seeing parabolic momentum over the past week. One trader explained that it is imperative for BTC to guard against more downside in the mid-term. he noted that the crypto is testing a parabolic trendline which was formed over the past few months:

 “BTC is trying to form an ascending triangle while testing parabola support.”