- Bitcoin is now approaching its crucial short-term support at $ 9,000, as bears are exerting enough sales pressure on crypto to compromise its consolidation phase
- BTC has fallen below this level on previous occasions, although each trip to the upper $ 8,000 has been short lived.
- There now seem to be several signs suggesting that the BTC is preparing to make a massive downward move.
- This decision, if made in the short term, could break through a crucial level of technical support and trigger a bearish trend in the medium term.
Bitcoin and the aggregated cryptocurrency market are starting to show signs of weakness after an incredibly tight trading week of around $ 9,000.
The BTC is now resting just a hair above its $ 9,000 lows, and buyers are eagerly trying to thwart a drop below that level.
It is essential to keep in mind that this level has been broken several times in recent weeks, but the substantial support in the region of the top $ 8,000 has made these movements fleeting.
In the short term, analysts are closely monitoring Bitcoin’s OBV indicator and its Bollinger bands to find out where it might move next.
These two indicators suggest that the further decline is imminent.
Bitcoin reaches crucial support level as sales pressure increases
As of this writing, Bitcoin is trading 1.5% at its current price of $ 9,020.
Over the past week, the benchmark price of the cryptocurrency has remained incredibly stable at around $ 9,100, ranging from $ 9,000 to $ 9,300.
The slow decline of $ 9,100 to its lowest ranges seems to be a grim sign for the outlook for the cryptocurrency.
If its support breaks again and Bitcoin plunges into the $ 8,000 region, it will be imperative that buyers quickly escalate and absorb the influx of selling pressure it could create.
An analyst recently noted that he was currently sitting on his lower Bollinger band while looking towards his 4 o’clock chart.
If this lower band is pierced, crypto could have significant volatility in favor of bears.
“Bitcoin pressing BB lower over the 4 hours,” he noted, pointing to the graph below.
Image Courtesy of Big Cheds. Chart via TradingView.
Technical indicators suggest decline is imminent
Other technical indicators seem to pose problems for Bitcoin’s short term outlook.
According to another popular analyst, the BTC’s volume on sale indicator (OBV) shows that the cryptocurrency is about to see further decline.
He talked about it in a recent tweet, saying he is now looking to see if it will start building a base around $ 9,000.
“OBV continues to show weakness. If the price consolidates too long at $ 9,000 and creates a base, I will take profits. Otherwise, I’m looking for more drawbacks. “
Image Courtesy of NebraskanGooner. Chart via TradingView.
It is highly likely that Bitcoin will not see any notable volatility until the closing of its weekly candle later in the day.
Featured image from Shutterstock. Charts from TradingView.