- Bitcoin is now slowly moving towards its crucial short-term support at $ 9,000, with the bears exerting enough selling pressure on the crypto to jeopardize its consolidation phase.
- BTC has broken below this level on previous occasions, though every trip to the area above $ 8,000 has proven to be short-lived
- Now there appear to be multiple signs suggesting that BTC is preparing to make a massive move to the downside.
- This move, should it occur in the short term, could pierce a crucial level of technical support and kick off a mid-term downtrend.
Bitcoin and the aggregate cryptocurrency market are starting to show some signs of weakness after a week of insanely tight trading of around $ 9,000.
BTC is now resting just a hair above its range lows at $ 9,000, and buyers are trying hard to thwart a decline below this level.
It is essential to note that this level has been broken multiple times in the past few weeks, but substantial support in the upper region of $ 8,000 has made these moves fleeting.
In the near term, analysts are closely watching the Bitcoin OBV indicator and its Bollinger Bands for information on where it can move next.
Both indicators suggest that a further disadvantage is imminent.
Bitcoin reaches crucial support level as selling pressure increases
As of writing, Bitcoin is trading down 1.5% at its current price of $ 9,020.
Over the past week, the cryptocurrency benchmark price has been incredibly stable at around $ 9,100, forming a range between $ 9,000 and $ 9,300.
The slow decline of $ 9,100 towards its range lows seems to be a bleak sign for the cryptocurrency’s outlook.
If its support breaks again and Bitcoin plunges into the $ 8,000 region, it will be imperative for buyers to step forward and absorb the influx of selling pressure that this could create.
An analyst recently noted that he is currently sitting in his lower Bollinger Band while looking at his 4-hour chart.
If this bottom band is punctured, crypto could experience significant volatility in bear’s favor.
“Bitcoin pressed a lower BB in 4 hours,” he noted as he pointed to the chart below.
Image Courtesy of Big Cheds. Chart via TradingView.
Technical indicators suggest downside is imminent
Other technical indicators appear to be spelling problems for Bitcoin’s short-term prospects.
According to another popular analyst, BTC’s Balance Volume Indicator (OBV) shows that the cryptocurrency is poised to see more downsides.
He spoke about this in a recent tweet, saying he’s now looking to see if he’ll start building a base for around $ 9,000.
“OBV continues to show weakness. If the price consolidates for a long time at $ 9,000 and builds a foundation, I will take profit. Otherwise, I’m looking for more inconvenience. “
Image Courtesy of NebraskanGooner. Chart via TradingView.
It is a great possibility that Bitcoin will not see noticeable volatility until its weekly candle closes later today.
Featured image from Shutterstock. Charts from TradingView.
