After expressing some signs of strength throughout the early part of the week, Bitcoin has now faced a grim rejection that sent its price reeling down to a crucial support level.
Following an extended bout of trading between $9,000 and $9,300, the benchmark cryptocurrency was able to break out of this trading range this week, subsequently rallying to highs of $9,500.
This has been a key resistance while for quite some time now, and BTC’s buyers were unable to surmount it.
BTC is now reeling lower and just tapped a crucial support level that has been established throughout the past couple of days.
Where it trends next will likely depend largely on whether or not bulls are able to stop Bitcoin from sliding beneath this support.
Bitcoin Faces Grim Rejection at $9,500 as Analysts Eye Further Downside
At the time of writing, Bitcoin is trading down roughly 3% at its current price of $9,200. This happens to be an important support level for the benchmark cryptocurrency.
Bears are putting up a heavy fight here, as it is currently in the process of breaking below it.
This latest movement came about after the crypto posted some incredibly positive price action when it was able to rally up towards highs of $9,500.
Many investors speculated that the break above $9,300 was significant, as this had previously been a robust resistance level.
It still appears that buyers are plagued by underlying weakness, as they were not able to drum up any notable support following this upwards breakout.
Analysts are now forecasting that Bitcoin will continue declining until it tests its crucial range low support at $9,000.
One trader spoke about this in a recent tweet, explaining that the digital asset’s near-term outlook is grim following this latest decline.
He postulates that a daily close back within its previous range between $9,000 and $9,300 would make the crypto “incredibly weak” – especially against altcoins.
“Bitcoin – Closing back into this previous range would make BTC incredibly weak, especially compared to alts that are making new local highs,” he noted.
Image Courtesy of Calmly. Chart via TradingView.
Analyst: $9,200 is a Crucial Level that BTC Must Hold Above
Another respected trader explained that he believes $9,200 is a crucial level to watch in the near-term, as Bitcoin’s reaction here could determine its mid-term future.
He notes that this latest decline will prove to be insignificant if buyers can continue defending this level.
“BTC HTF Update: Perfect tap against $9500 and pulling back now which is fine as long as bulls can defend $9200 as support on the next retest, I would be very short if $9200 fails to hold. Looking for S/R setups for both biases right now and staying out of this chop action.”
Image Courtesy of Cactus. Chart via TradingView.
Bitcoin also appears to be moving in tandem with the stock market, which is currently sliding lower.
This could be a factor that influences where it goes next.
Featured image from Shutterstock. Charts from TradingView.