Bitcoin (BTC) has continued to trade sideways around $8,000 after recovering slightly from its recent drop to the upper-$7,000 region, but its bulls have failed to garner any notable upwards momentum following this slight recovery, which may spell trouble for its near-term price action.
Analysts are now noting that Bitcoin’s “bedrock” support in the near-term currently exists around $7,000, and the aggressive selling that the crypto has incurred in recent times may mean that a visit to this level is imminent in the near-future.
Bitcoin Consolidates Around $8,000 Amidst Quiet Sunday Trading Session
At the time of writing, Bitcoin is trading down nominally at its current price of $8,040, which marks a slight recovery from its recent lows of $7,900 that were set earlier this week.
It is important to note that the upper-$7,000 region has proven to be a strong level of support for the past several days and weeks, but BTC’s bulls have failed to post any notable extension of the upwards momentum that is incurred with each time the crypto visits this region.
DonAlt, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Bitcoin’s near-term bedrock support exists around $7,000, which may be the ideal price region for traders to enter long positions.
“$BTC update: Still no close above $8750. Still looks pretty shitty. I’m bearish until BTC starts reclaiming levels instead of getting rejected by them. Next resistance: $8200. Next support: $7700. Next support that I’d trust to trade on the long side: $7000,” he explained while pointing to the chart seen below.
$BTC update:
Still no close above $8750.
Still looks pretty shitty.
I'm bearish until BTC starts reclaiming levels instead of getting rejected by them.Next resistance: $8200
Next support: $7700
Next support that I'd trust to trade on the long side: $7000 pic.twitter.com/jzrxFFZrHO— DonAlt (@CryptoDonAlt) October 20, 2019
BTC Faces Aggressive Selling Pressure in Recent Times
Supporting DonAlt’s notion that Bitcoin may soon incur further downside is Cantering Clark – another popular cryptocurrency analyst – who recently observed that the selling pressure that the crypto has been facing in recent times has been quite significant.
“I have gone ahead and highlighted imbalances between buyers and sellers >250% $btc. Look how disproportionate the market selling volume is to the buying volume. Sometimes 5-10x as much. Negative delta circled red. Positive delta circled green. This is aggressive ass selling,” he explained in a recent tweet.
https://twitter.com/canteringclark/status/1185723806079442946?s=21
Assuming that this notable selling pressure persists, it is possible that Bitcoin will drop lower until it reaches its significant support level at $7,000, which may be a long-term bottom that precedes the next noteworthy bull run.
Featured image from Shutterstock.