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Bitcoin (BTC) has once again found itself caught in the throes of a choppy trading range that has provided little clarity as to whether or not it will begin venturing into the four-figure price region, or if it will begin climbing until it retests its year-to-date highs of $13,800.
This choppiness has been largely centered around a battle between BTC bulls and bears that is currently ongoing, as the crypto continues to find some levels of support in the upper-$9,000 region.
Bitcoin Continues Finding Support Around $10,000
At the time of writing, Bitcoin is trading down nearly 4% at its current price of $10,020, which marks a deep pullback from its highs of just below $10,500 that were set yesterday.
Today’s price drop has once again led the cryptocurrency back to $10,000, which remains a key psychological support level. Although each dip below $10,000 has been met with decent buying pressure, it does appear that this level may be weakening.
While looking at BTC’s weekly price action, some analysts have noted that its bullish response to its dip to $9,800 this past Wednesday and yesterday’s surge to highs of $10,500 may have been sparked by growing trade tensions between the U.S. and China, but the fleeting nature of this movement may have invalidated this theory.
“Today was the first time $BTC reacted sharply in *real-time* to a Trade War breaking headline or $USDCNY fix,” Alex Krüger, an economist, noted in a recent tweet while referencing the price surge that has since been erased.
Today was the first time $BTC reacted sharply in *real-time* to a Trade War breaking headline or $USDCNY fix. pic.twitter.com/Usibh3bSD5
— Alex Krüger (@krugermacro) August 23, 2019
BTC’s Key Support Levels May Be Wearing Thin
Although Bitcoin has been able to continue finding support around $10,000, analysts are now noting that this support level may be wearing thin, which means that the crypto may soon drop to its next major region of buying pressure around $8,800.
DonAlt, a popular crypto analyst on Twitter, spoke about Bitcoin’s recent price action in a tweet, explaining that its inability to post any sustained movement upwards signals that its short-term price action is bearish, and that its current support region may be “wearing thin.”
“$BTC daily update: Closed above mini resistance and immediately dumped off. That’s what I mean when I say choppy conditions. That said it never left the lower trading range, and as long it’s in there short-term bias has to be bearish. Support wearing thin here, in my opinion,” he said.
$BTC daily update:
Closed above mini resistance and immediately dumped off.
That's what I mean when I say choppy conditions.
That said it never left the lower trading range, and as long it's in there short term bias has to be bearish.Support wearing thin here, in my opinion. pic.twitter.com/3yzu3P0r1P
— DonAlt (@CryptoDonAlt) August 24, 2019
This weekend will likely be an illuminating time for BTC traders, as its reaction to its current bout of selling pressure will likely signal whether or not it is ready to climb higher in the near-term, or if further losses are imminent.
Featured image from Shutterstock.
