Bitcoin bulls were able to post a strong defense of a crucial support level after facing some turbulence overnight.
This bolstered the cryptocurrency and has resulted in it once again trading squarely within its previously formed consolidation channel around $9,400.
It does appear that BTC is now sitting just beneath a heavy resistance level that could stop it from seeing any significantly further upside in the near-term.
This resistance region is elucidated while looking towards Bitcoin’s “In/Out of the Money” (IOMAP) indicator, which shows that a significant number of investors entered positions between $9,300 and $9,600.
Because these investors may be apt to sell this crypto for a breakeven, this could prove to be a “critical” resistance region – according to one analytics firm.
Bitcoin Rebounds from Recent Lows After Facing an Influx of Selling Pressure
At the time of writing, Bitcoin is trading down just under 1% at its current price of $9,355. The cryptocurrency declined to lows of under $9,200 yesterday before garnering some notable support.
From this point it was able to rebound back up to its current price levels, from which point it has been trading sideways ever since.
Its current price also happens to be the level at which it has been consolidating at throughout the past couple of weeks, as it marks the mid-point of the multi-month trading range between $9,000 and $10,000 that it has been caught within.
As for where the cryptocurrency might trend next, analysts are anticipating it to continue trading sideways until next week when it reaches the apex of a large triangle formation it has been forming.
This level also happens to coincide with the June futures expiration date.
“The ascending triangle is still the plan for now. Eyes on June futures expiration next Friday the 26th for some action,” one analyst noted.
Image Courtesy of Jonny Moe. Chart via TradingView
Here are the Crucial Levels to Watch: According to On-Chain Data
Blockchain analytics firm IntoTheBlock’s IOMAP indicator shows that there is heavy resistance between $9,300 and $9,600.
“The IOMAP indicator detects that over 2.1m addresses had previously purchased 1.42m BTC at the range between $9,307 and $9,578, a critical resistance level, as several of these addresses will attempt to break-even on their positions,” they noted.
Data via IntoTheBlock
This could slow Bitcoin’s momentum, but the chart seen above does indicate that this resistance degrades after $9,600.
The research firm also explained that the same indicator shows that the benchmark cryptocurrency has support between $9,000 and $9,280.
Below this region, the crypto appears to have some significant support, which could help slow any descent sparked by a potential rejection at its current resistance region.
Featured image from Shutterstock. Charts from TradingView.