Bitcoin has firmly established that it is trading within a relatively tight range. This comes as the cryptocurrency has been hovering within the upper-$8,000 region for several days.
Each visit up to highs of $9,200 has been met with significant selling pressure that subsequently forces it lower, signaling that this is the key near-term resistance level that bulls need to target.
It is important to note that the crypto has visited its range lows more times than it has touched its range highs. One analyst is claiming that this could be a bearish sign for BTC.
An interesting trend to observe in the near-term is how Bitcoin responds to some significant bids that were placed just beneath its current price region. If BTC fails to post a sustained uptrend as a result of these bids, one analyst believes it could be prone to a “rug pull” scenario.
Bitcoin Enters Firm Bout of Sideways Trading as Bulls Flash Subtle Signs of Weakness
At the time of writing, Bitcoin is trading up just under 1% at its current price of $8,890.
This marks a notable decline from daily highs of $9,200 that were set overnight when bulls once again attempted to spark an uptrend.
Last night’s rejection marked the fourth one that the crypto has seen at this price region, elucidating that the sell wall built here may be insurmountable in the near-term.
Throughout the course of this rangebound trading, BTC has tested the lower boundary of its trading range more times than it has tested the upper boundary – a subtle sign of weakness amongst buyers.
This has led one analyst to note that it is tough to have any near-term conviction of where the crypto will trend next, explaining that Bitcoin may move to “chop” up investors before making a big impulse.
“Seems pretty 50/50 right now. Tough to have conviction. The reality of it is we are just in a range. The low has had more touches than the high. Reclaim mid-range then price probably test the highs. This is the type of stuff that will chop you up before a big impulse,” he said.
BTC Could See a “Rug Pull” as Large Bids Fail to Propel Price Higher
Yesterday evening some large buyers stacked notable bids around $8,800.
Shortly after this, BTC made a fleeting move past $9,000 before once again declining, signaling that the crypto could be poised to see a “rug pull.”
“Waiting to see how price reacts on those added bids… If price doesn’t go up, this might be microselling and a potential rug pull,” one popular trader noted.
Although BTC did see a tempered reaction to these bids, the potential removal of them could still cause the crypto to decline further.
Featured image from Unplash.