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Today’s been a rough day for Bitcoin, with the intense selling pressure currently plaguing the global equities market spilling over into the crypto market, leading BTC to struggle to break above its resistance at roughly $9,000.
Today’s price action has largely consisted of it trading sideways around $8,700, but this morning’s rejection at $8,900 bolstered the possibility that the crypto will soon see further downside.
In spite of this, BTC has been able to maintain above a key short-term level that could ultimately lead it to climb higher, with one trader noting that a defense of this level could mean a rebound to its range highs is imminent.
Bitcoin Consolidates Following Recent Rejection at $8,900
At the time of writing, Bitcoin is trading down just under 1% at its current price of $8,800, which is around where it has been trading at in the time following this morning’s firm rejection at $8,900.
Because the benchmark cryptocurrency has failed to garner enough buying pressure to recapture its previous position within the $9,000 region, it does seem as though further near-term downside could be imminent.
In spite of this, Crypto Birb – a popular trader on Twitter – explained that he is currently looking towards short-term bullish divergence as a potential catalyst for a movement up towards the upper boundary of its multi-day trading range at $9,000.
“Bullish divergence btc short-term setup to watch,” he said while pointing to the levels marked on the below chart.
bullish divergence $btc short-term setup to watch pic.twitter.com/x5lwaaH4Ll
— Adrian Zduńczyk, CMT (@crypto_birb) March 3, 2020
If Bitcoin faces yet another firm rejection around $9,000, it is possible that a sharp movement to the lower boundary of this trading range at $8,400 is inbound.
Holding Above This Level Could Allow BTC to Break Range’s Upper Boundary
Bitcoin’s ultimate response to this trading range should provide valuable insights into the state of its recent downtrend, as a break below $8,400 would mean this selloff will cut significantly deeper.
However, another popular cryptocurrency trader who goes by the name George on Twitter explained that a solid defense of the middle of this range – at roughly $8,750 – could be enough to lead BTC back to $9,000, with a strong test of this level opening the gates for significantly further upside.
“BTC: Following the plan nicely. Hold the mid range retest and we’re off to the highs imo,” he explained.
Following the plan nicely. Hold the mid range retest and we're off to the highs imo. pic.twitter.com/7jq35NuVEN
— George (@George1Trader) March 3, 2020
Although from a technical perspective it does seem as though there is a solid chance that Bitcoin soon recaptures $9,000, BTC’s recently established pattern of trading in tandem with the global markets could mean further downside is imminent.
Featured image from Shutterstock.
