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Bitcoin has once again dropped down to its near-term support level after a brief attempt from BTC’s bulls to push to crypto back above its previously established support level at $8,700, which appears to have flipped into a resistance level in the time since it broke below this level.
Analysts are now noting that Bitcoin may soon set fresh multi-day lows before gaining enough buying pressure to surge higher.
Bitcoin Rejected at $8,700 as Bulls Fail to Garner Significant Strength
At the time of writing, Bitcoin is trading down roughly 1% at its current price of $8,540, which marks a retrace from its daily highs of nearly $8,700 that were set yesterday.
Yesterday’s brief upwards movement proved to be fleeting in spite of the apparent strength that bulls had been building, and their inability to push the cryptocurrency higher may point to an underlying weakness that could lead the crypto’s bears to take firm control of its near-term price action.
This recent price action also confirms that $8,700 is a strong level of resistance for the cryptocurrency, which may continue holding strong in the near-term.
Livercoin, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that the move to this resistance level swept all the upside liquidity, which likely means that further short-term downside is imminent for Bitcoin.
“Taking a quick short on $BTC. Price swept all the upside liquidity and left multiple deep swing lows beneath while doing so. I am anticipating a pullback into the weekly open / 15M block which is right below the range high. My targets are the two deep swing lows,” he said while pointing to the levels in the lower-$8,000 region seen within the chart below.
Taking a quick short on $BTC.
Price swept all the upside liquidity and left multiple deep swing lows beneath while doing so.
I am anticipating a pullback into the weekly open / 15M block which is right below the range high.
My targets are the two deep swing lows.#Crypto pic.twitter.com/BRQES7EgO2
— Livercoin (@Livercoin) November 18, 2019
Will Next Upside Movement Commence When BTC Taps $8,150?
Mayne, another popular crypto analyst on Twitter, offered a similar sentiment to Livercoin, explaining that he believes Bitcoin will dip as low as $8,150 in the near-term before it hits a support region that allows it to post further gains.
“$BTC: Slowly making our way to the grey block I’ve been watching for a few weeks. I started longing early because there is no guarantee we hit the level exactly, could get front-run, etc, I like to layer in on swing positions. 2 bids left, $8300 and $8150,” he explained.
Slowly making our way to the grey block I've been watching for a few weeks.
I started longing early because there is no guarantee we hit the level exactly, could get front-run, etc, I like to layer in on swing positions.
2 bids left, $8300 and $8150. pic.twitter.com/6VQV9QMt7v
— Mayne (@Tradermayne) November 18, 2019
How Bitcoin reacts to these near-term support regions in the coming hours will offer significant insight into where the crypto is heading next.
Featured image from Shutterstock.
