- Bitcoin has witnessed some slight instability throughout the past few hours, with sellers rejecting BTC above its key resistance level at $10,500
- The decline from its highs shows that this price remains a strong region of selling pressure
- The likelihood of BTC seeing further downside in the near-term is now significantly higher than what it was previously
- Some analysts are noting that where it trends next will depend largely on its reaction to a few key liquidity levels that he is closely watching
Bitcoin faced a slight rejection above $10,500 overnight, with bulls being unable to maintain the strong momentum that they had built throughout the past several weeks and months.
This has contributed to the cryptocurrency’s technical weakness and may indicate that some downside is imminent in the near-term.
It is important to note that BTC has yet to break below its support at $10,200, which has been defended by buyers on multiple occasions throughout the past several days and weeks.
While speaking about this latest move, one analyst explained that the benchmark crypto is now approaching a few key liquidity levels. How it reacts to these levels should offer insight into its near-term outlook.
Bitcoin Erases Yesterday’s Gains as Buyers Lose Their Momentum
At the time of writing, Bitcoin is trading down just under 2% at its current price of $10,300.
This is around the price at which it has been trading throughout the past few days and weeks, with buyers being unable to garner any strong momentum as sellers continue defending $10,500.
For a brief moment overnight, the cryptocurrency surged as high as $10,560 before plunging towards $10,280. This is around the price at which it found some strong support that slowed its descent.
Analyst: BTC Likely to Continue Plunging Until It Takes Out Key Liquidity Targets
While speaking about the cryptocurrency’s near-term outlook, one analyst explained that he is watching for Bitcoin to reel towards $10,100 as it takes out some downside liquidity.
He does state that he expects the benchmark crypto to continue climbing higher once it takes out these key levels.
“As usual, liquidity levels is where it’s at. Liqs get taken, price dumps. We just took some liqs again. I can see this going back up from here, otherwise it maybe dumps a bit further to 10100,” he explained.
Image Courtesy of Byzantine General. Chart via TradingView.
How the aggregated market trends in the coming few hours should provide insight into the significance of this recent Bitcoin rejection.
Featured image from Unsplash. Charts from TradingView.