Bitcoin has seen some intense weakness today after trading within the upper-$9,000 region yesterday.
Its latest rally higher led it all the way up to highs of $9,800, which is the level at which it found some significant selling pressure that subsequently caused its price to start declining lower.
The follow through on the downwards momentum incurred here does seem to suggest that further weakness is imminent in the days and weeks ahead.
One popular analyst is now noting that he believes the cryptocurrency’s long-held bout of sideways trading is quickly coming to an end.
He contends that BTC will decline down towards the mid-$8,000 region before finding any strong support that slows its descent.
The being said, other analysts are noting that the benchmark digital asset’s mid-term trend remains the same until it breaks below $9,200.
Bitcoin Flashes Signs of Weakness Following Recent Rejection at $9,800
Earlier this week, Bitcoin faced a firm rejection at $9,800 that caused it to decline to lows of $9,600.
From this point, the crypto traded sideways for an extended period of time, struggling to garner any clear momentum in either direction.
It has since lost this stability and declined lower, pointing to an underlying weakness amongst the cryptocurrency’s buyers.
At the time of writing, Bitcoin is trading down over 3% at its current price of $9,300. The region between $9,000 and $9,400 has been strong support, but it is unclear as to whether this region will continue holding strong in the hours and days ahead.
One analyst recently explained that he is closely watching to see how BTC responds to its key near-term support at $9,260 for insights into where it may trend next.
He does add that this latest rejection at $9,800 does make him think that it will continue declining lower in the near-term.
“$9260 area remains an important level for Bitcoin, especially on higher time frames. A run-up to $9800 from $9138 only for price to drop back down to $9200s this quickly makes me think we continue to follow through down. Will be short scalping bounces until proven otherwise,” he said.
Image Courtesy of Josh Rager. Chart via TradingView
Top Trader: BTC Likely to See Violent End to Multi-Week Consolidation Phase
There does seem to be a general consensus amongst analysts that Bitcoin is poised to see further downside.
One top pseudonymous trader explained in a recent tweet that he believes the crypto’s sideways trading bout is close to concluding.
His downside target is currently set around $8,600.
“While I’ve been enjoying the last two weeks of sideways to enjoy life I think it’s time to start moving again. Big picture we’re still trading in a trading range that had a false breakout to the upside resulting in a down move. Makes shorts overall more attractive than longs,” he said.
Image Courtesy of DonAlt. Chart via TradingView
Featured image from Shutterstock. Chart from TradingView.