Bitcoin is now beginning to display some signs of breaking down. For a long period of time, it was trading within a strong range between $9,000 and $10,000. Bitcoin dipped to lows of under $9,000 as it was rejected at $9,800 earlier this week. Analysts have expressed their opinion on the matter.
The weakness was because of Bitcoin setting lower-highs over the past few weeks. Bitcoin was also not able to post any firm reactions to the lower-$9,000 regions, its key support. After going through rejection, the reaction was weak and tempered.
There exist some bearish catalysts which may be adding to this weakness. One example is the heightened miner outflows throughout the past few days. These seem to attack just before crypto gets into short and mid-term downtrends.
Analysts shared their thoughts on where cryptocurrency could trend next. Some set near-term targets as low as $7,800. It also has remarkable support of around $8,500 that could make the descent slower.
Weakness Mounts; Bitcoin Breaks Below $9,000 Support
Bitcoin is now trading down just over 2% at the current price of $8,950. Bitcoin found some little support. Nevertheless, it continued to show signs of weakness as the buying pressure starts to fade out.
After over a month of consolidation between $9,000 and $10,000, Bitcoin broke below its crucial lower-range boundary.
Investors were not actually surprised that Bitcoin is starting to break down from this trading range. It is because Bitcoin has posted numerous rejections at $10,000. Moreover, it has established lower highs over the past few weeks.
Analysts say that the key level to watch out is $8,900. A break below $8,900 could guide it to freefall towards mid-$8,900 regions before finding any support.
Josh Rager, a cryptocurrency analyst spoke his opinion on a recent tweet:
Analysts’ Opinion: How Low Bitcoin Could Plunge
The benchmark digital asset could find some support at $8,500. Nonetheless, numerous traders emphasized the clear distribution pattern as a potential catalyst for the deeper selloff.
A pseudonymous trader explained that the decline will eventually start accelerating in the near-term on a tweet: