- Bitcoin has been struggling to garner any clear upwards momentum throughout the past several weeks
- This has degraded its technical strength, resulting in it seeing heightened selling pressure
- Analysts are growing somewhat cautious about the crypto’s near-term outlook
- Nonetheless, it is essential to note that it remains above multiple crucial levels
- As such, until these support levels throughout the lower-$11,000 region are broken, BTC may still be well-positioned to see further upside
Bitcoin and the aggregated cryptocurrency market saw a sharp decline today that came about after BTC plunged to its near-term support level at $11,400.
This decline occurred following a period of strength seen over the past couple of days, during which time BTC attempted to shatter the heavy resistance sitting at $12,000.
Bitcoin’s continued inability to break through this resistance region seems to point to significant underlying weakness, potentially revealing that bulls are growing weaker by the day.
Traders are now noting that the benchmark cryptocurrency is likely to see some sideways trading in the near-term due to the massive support between $11,200 and $11,400.
Bitcoin Approaches Key Support Region as Technical Weakness Mounts
At the time of writing, Bitcoin is trading down over 3% at its current price of $11,400. This marks a notable decline from daily highs of nearly $11,800 that were set yesterday.
Because bulls have not been able to break above $12,000 following the decline beneath this level, it will likely continue acting as crucial resistance in the days, weeks, and possibly even months ahead.
One popular crypto analyst is now pointing to a range between $10,900 and $12,370, noting that which of these boundaries is broken first should reveal that crypto’s mid-term trend.
“There’s the range to watch – I expect more sideways with altcoins to continue to make moves. CME Gap meme continues to be unexplored – but doesn’t have to fill. But expect some nice downwards wicks to come – even though any daily close above $10,500 remains bullish,” he said.
Image Courtesy of Josh Rager. Chart via TradingView.
Here are the Key Support Levels Bulls Must Defend to Guard Against a Dip to $10,000
Another analyst explained that he is closely watching to see if bulls can defend the region between $11,200 and $11,400.
He notes that a break below this level could send Bitcoin straight down to $10,000.
“$11,200-11,400 is a must-hold area. If we lose that zone, I think we’ll be going towards $10,000. Break and flip $12,000 -> new highs.”
Image Courtesy of Crypto Michaël. Chart via TradingView.
Because the selling pressure currently being placed on Bitcoin is starting to ramp up, investors may soon gain insight into the state of its mid-term uptrend.
Featured image from Unsplash. Charts from TradingView.