- It has been a rocky past few days for Bitcoin, as the benchmark cryptocurrency dropped as low as $11,100 following yesterday’s surge to highs of $12,200
- This weakness came about in the form of a slow descent down to $11,700, which is the point at which it incurred a massive inflow of selling pressure
- Bulls were able to defend its $11,100 support, and where it trends next may depend largely on whether or not it can maintain above this level
- Analysts, however, are noting that the cryptocurrency is showing some signs of weakness
- One trader expects BTC to slide down towards $9,000 in the near-term before finding any strong support
Bitcoin and the entire crypto market reverted control back to bears today, with BTC erasing nearly $1,000 off of its price while Ethereum and other altcoins all see similar losses.
Where it trends in the near-term may depend largely on whether or not buyers are able to keep the crypto above the lower boundary of its cloud formation, which has been acting as strong support for BTC throughout the past several hours.
A daily candle close beneath the cloud could lead to serious near-term losses.
One trader is setting his sights on a move to $9,000 in the mid-term, noting that the resistance at $12,000 continues to be unbreakable.
Bitcoin Shows Signs of Weakness Following Overnight Selloff
At the time of writing, Bitcoin is trading down over 5% at its current price of $11,350, which is around where it has been trading at following the overnight selloff.
This decline came about after an extended period of time in which the crypto held above $12,000 – even posting a daily close above this crucial resistance level.
The immense selling pressure at this price proved to be insurmountable despite Bitcoin’s strength, as it caused the cryptocurrency to plunge all the way down to lows of $11,100 overnight.
Analysts are now noting that the lower boundary of BTC’s cloud has been acting as strong support, stopping it from posting any significantly further losses. This can be seen in the below chart:
Image Courtesy of Teddy. Chart via TradingView.
Here’s How Low BTC Could Dip as Selling Pressure Mounts
He notes that $9,000 coincides with last month’s low, making a visit to this level a likelihood in the near-term.
“Eyes on last months low as long as we stay below the open,” he said.
Image Courtesy of George. Chart via TradingView.
Unless bulls step up and propel Bitcoin higher in the near-term, the likelihood of it seeing further downside remains quite high.
Featured image from Unsplash. Charts from TradingView.