Bitcoin (BTC) has been facing a steep sell-off over the past few days that has sent the cryptocurrency into the $10,000 region, which has led many analysts and investors alike to fear the possibility that Bitcoin revisits the four-figure price region in the near-future.
Now, analysts are explaining that Bitcoin may soon incur a decent sized relief rally despite its consistent losses over the past few days, which may allow BTC to find some stability at a slightly higher price region.
Bitcoin Plummets Towards Lower-$10,000 Region as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down nearly 5% at its of $10,350 and is trading down significantly from its daily highs of nearly $11,000 that were set yesterday.
Importantly, this latest bout of downwards pressure marks an extension of the selling pressure that was incurred when BTC attempted to break above $12,000 on multiple occasions but faced a swift and violent rejection with each attempt.
These rejections have signaled that Bitcoin’s bulls do not currently have significant strength, despite their ability to push BTC from the lower-$3,000 region to highs of $13,800.
DonAlt, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that BTC’s next major level of support exists at $9,800, and a break below this could spell trouble for the crypto’s bulls.
“$BTC daily update: Currently at support. Bulls need to hold 10600 or at the very least 9800 on a closing basis. If those fail I expect a range breakdown into a sustained move to the downside. Starting to get interesting here,” he explained in a recent tweet.
daily update:
Currently at support.
Bulls need to hold 10600 or at the very least 9800 on a closing basis.
If those fail I expect a range breakdown into a sustained move to the downside.
Starting to get interesting here.— DonAlt (@CryptoDonAlt)
Will BTC Soon See a Relief Rally?
Although the latest downwards pressure signals that sellers are currently in full control, it also means that the crypto is likely to soon experience a relief rally that could be the result of a short squeeze.
In order for this possibility to be confirmed however, Bitcoin may have to rise towards $10,800 in the near-term.
“$BTC – Currently testing HTF Support. Good place for a bounce. The reaction at $10.8k – $11k on LTF will be important for my arguments. I believe this is a bear trap and late shorts are going to get squeezed as they often have. A Daily Close above 10.8k would be ideal,” UB, another popular cryptocurrency analyst on Twitter, explained in a recent tweet.
– Currently testing HTF Support. Good place for a bounce.
The reaction at $10.8k – $11k on LTF will be important for my arguments.
I believe this is a bear trap and late shorts are going to get squeezed as they often have.
A Daily Close above 10.8k would be ideal.
— UB (@CryptoUB)
As the day wraps up it is highly likely that analysts will garner greater insight into which direction BTC is heading next based on how it responds to its current position within the low-$10,000 region.
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