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It has been a rocky past day for Bitcoin, with the benchmark crypto posting massive losses as buyers struggle to garner significant momentum.
This selling pressure has sent shockwaves throughout the entire cryptocurrency market, causing altcoins to see massive selloffs that have erased the bulk of their recent gains.
One trader is specifically noting that the cryptocurrency could be on the cusp of seeing its ongoing selloff come to an end, however, as one indicator points to slowing downside momentum.
That being said, the declining delta seems to indicate that BTC may plunge towards $10,100 before it is able to find any significant support.
A continued defense of the lower-$10,000 region is imperative for bulls. A break below this level would strike a blow to the cryptocurrency’s macro market structure and potentially lead it to see further losses in the days and weeks ahead.
Analyst: This Technical Factor Suggests a Move to $10,100 is Imminent
At the time of writing, Bitcoin is trading down over 3% at its current price of $10,600. The cryptocurrency’s descent has slowed at this price region, indicating that there is some buying pressure here.
This recent decline came about rather unexpectedly and was likely the result of turbulence in the stock market. The strength currently being expressed by the US Dollar may be further compounding BTC’s weakness.
While speaking about the benchmark cryptocurrency’s near-term outlook, one trader explained that a downwards expansion of BTC’s delta seems to indicate that a move to the high $10,000 region is imminent.
“Delta expanding to the downside, looking at high 10100s,” he said while pointing to the below chart.
Image Courtesy of RedXBT.
If this decline does occur, it will likely create even further weakness for BTC in the days and weeks ahead.
Indicator Suggests BTC’s Downturn is Slowing
On a slightly more optimistic note, there is one indicator that suggests that Bitcoin’s downtrend may be losing its momentum for the time being.
Fund manager Mohit Sorout offered a chart with this indicator in a recent tweet, showing that the intensity of the selling pressure may be slowing as Bitcoin reaches its key range-low support at just above $10,000.
“Where is the btc blood you guys keep talking about,” he asked while referencing the below chart.
Image Courtesy of Mohit Sorout. Chart via TradingView.
The coming few hours and days should offer some insights into the present state of both Bitcoin and the crypto market.
Featured image from Unsplash. Charts from TradingView.
