- Bitcoin is currently struggling to hold above its crucial $16,000 support level as buyers and sellers both fight for control of its near-term price action
- Where it trends next will likely depend largely on the continued reaction to this level, as a sustained decline below it could strike a serious blow to its technical outlook
- One trader is noting that one technical indicator is suggesting that Bitcoin is overbought at the present moment
- The same indicator shows that a move to $13,300 could be imminent, as this is the next key support level for the cryptocurrency – according to its Ichimoku Cloud
Bitcoin and the aggregated cryptocurrency market have been struggling to maintain their momentum throughout the past 12 hours or so.
The selling pressure faced above $16,000 hasn’t been too intense, but bulls’ waning strength has caused it to drop below this level.
Buyers are ardently attempting to reverse this downwards momentum and hold it above this key level, but it does seem as though downside could be imminent.
One trader explained in a recent tweet that the cryptocurrency appears to be overbought at the moment, with its Ichimoku Cloud support currently sitting at just over $13,000. This could mean a decline to this level is imminent.
Bitcoin Struggles to Hold $16,000 as Selling Pressure Mounts
At the time of writing, Bitcoin is trading down just over 2% at its current price of $16,000. The support here has been holding throughout the morning, but it does appear that a break below it could come about at any point.
Where it trends in the near-term will depend largely on whether or not it can continue holding this crucial level.
If it dives below it, BTC could see an influx of selling pressure that helps mark $16,500 as a local high.
Indicator Suggests BTC Could See Further Losses
While sharing his thoughts on the cryptocurrency, one trader noted that it is showing signs of being overbought, with its Ichimoku Cloud support currently sitting around $13,300.
This could mean that a decline to the liquidity in this price region is imminent in the near-term.
“1D BTC… very early on this but TK C-clamp starting to form (overbought conditions), Kijun on Cloud at 13.3k.”
Image Courtesy of Josh Olszewicz. Source: BTCUSD on TradingView.
Where Bitcoin trends in the coming few days should provide some insight into whether this is a valid possibility, as a sustained break below $16,000 would be a grim development.
Featured image from Unsplash. Charts from TradingView.