- Bitcoin’s price action as of late has greatly favored bears, with bulls being unable to generate any significant momentum
- This comes just 24 hours following a failed breakout attempt seen by the cryptocurrency that ultimately resulted in it seeing a massive rejection around $34,500
- The selling pressure here indicates that bulls may not have enough present strength to reverse the downtrend that began following the break below $40,000 several weeks back
- This has created headwinds for the entire crypto market, with many altcoins also losing momentum as a result
- One trader is now watching for a move down towards $26,000 in the near-term, noting that a massive rebound will likely follow this
Bitcoin and the entire crypto market have seen some mixed price action as of late, with bulls and bears both being wholly unable to gain a firm grasp of its mid-term trend.
Overall, the price action has favored sellers, with BTC’s bounces growing weaker and weaker as buyers move to the sidelines.
One analyst is now musing the possibility that Bitcoin is on the cusp of seeing a bearish breakdown, with the selling pressure here potentially indicating that a test of its yearly open at $26,000 is imminent.
Bitcoin Struggles to Gain Momentum as Sellers Try to Take Control
At the time of writing, Bitcoin is trading down just under 2% at its current price of $31,750. This marks a notable decline from daily highs of over $34,500 set just a couple of days ago.
The sharpness and severity of the slide from these lows suggest that bears have control over the cryptocurrency’s price action. It also indicates that BTC may need to see further downside before its uptrend can continue.
Analyst Claims BTC is Bearish: Eyes on $26,000
One analyst spoke about Bitcoin’s failed attempt to confirm a swing low, explaining that this is a bearish occurrence compounding the weakness brought about by a bear flag.
He is now watching for a move to $26,000, noting that it can only be invalidated by a daily close above $33,850.
“BTC tried yesterday to form a confirmed Swing Low, but failed. That’s bearish for now. Starting to bear flag again, opening the door for that move towards a mid-60day cycle low. Daily close above $33,850 bullish.”
Image Courtesy of Bob Loukas. Source: BTCUSD on TradingView.
Where the market trends next will undoubtedly depend on Bitcoin and its continued reaction to the key support that exists right around where it is currently trading at $31,000 and $30,000.
Featured image from Unsplash. Charts from TradingView,