Bitcoin is About to Reach a Pivotal Point as Buyers Defend Key Level
- It has been a choppy day of trading for Bitcoin and the aggregated crypto market
- This primarily stems from BTC’s inability to maintain the upwards momentum that was driving it higher yesterday
- Although losing its momentum is a bear-favoring sign, it is important to note that not too much has changed for BTC from a technical perspective
- One analyst is noting that the benchmark cryptocurrency is now reaching a pivotal level that will shape its mid-term trend
- A reaction to this level will likely take place in the coming few days, making this weekend’s trading session vital for BTC’s near-term outlook
Bitcoin saw some slight momentum yesterday that led it up to highs of $10,500 before its buying pressure faltered, and its price began drifting lower.
This led the cryptocurrency to see an influx of selling pressure that struck a blow to its technical structure, but it is important to note that it has not invalidated its short-term strength.
Analysts are still noting that the crypto is positioned to see a breakout rally. Still, it is imperative that it defends one key support level and shatters a descending trendline that it is fast approaching.
A failure to do so would be grim and open the gates for BTC to see significantly further downside.
Bitcoin Shows Signs of Weakness Following $10,500 Rejection
At the time of writing, Bitcoin is trading down just under 1% at its current price of $10,290. This is around the price at which it has been trading throughout the morning hours.
Yesterday, bulls stepped up and propelled the benchmark digital asset to highs of $10,500 before it lost its momentum and witnessed its price plunge down towards $10,200.
This decline was somewhat intense and suggested that bulls don’t have enough strength to catalyze a sustainable move higher.
The $10,200 region has been strong support throughout this turbulence.
Analyst: BTC Fast Approaching Apex of Key Formation
While looking towards Bitcoin’s technical outlook, one analyst explained that the cryptocurrency is rapidly approaching the apex of a technical formation that has been established throughout the past few weeks.
As seen in the below chart, it is being guided lower by a descending trendline, and rapidly approaching the apex of where this trendline meets its $10,000 support.
“Same old support, same old resistance – apex getting closer. Big move coming soon,” the analyst explained.
Image Courtesy of Teddy. Chart via TradingView.
For Bitcoin to see further momentum in the near-term, bulls must continue defending the cryptocurrency’s key support at $10,000 in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.