- Bitcoin witnessed an intense influx of selling pressure yesterday that caused its price to reel down towards lows of $11,600
- Although it was able to find strong support at these lows, this recent selloff forced it back below the $12,000 region
- This is a grim sign for its mid-term outlook, as it points to underlying weakness amongst the cryptocurrency’s bulls
- Analysts are now noting that it does appear to be in a “fragile” position
- This means that any further selling pressure could result in it seeing a major selloff that sends it reeling below its crucial near-term support
Bitcoin and the aggregated crypto market are currently caught within a slight downtrend.
This came about after BTC lost the buying pressure that was previously allowing its price to stabilize within the mid-$12,000 region.
Its inability to sustain this recent technical breakout shows that bulls are losing their momentum, which may be a sign that downside is imminent in the days and weeks ahead.
The coming few days will be vital for understanding Bitcoin’s near-term trend, as the cryptocurrency is now in a “fragile” position – according to analysts.
Bitcoin Shows Signs of Weakness as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down just under 1% at its current price of $11,880. This is around the price at which it has been trading throughout the past few hours.
This price region is also where the benchmark cryptocurrency consolidated for several weeks previously. This indicates that the crypto may see another bout of sideways trading within this region.
While speaking about this, one analyst explained that BTC will consolidate around its current price levels because seeing a continuation of its downwards momentum.
“Well, we did get the fake-out, didn’t we? I thought the drop would be towards $11,500 but came close. The general scenario is that we’ll be ranging a bit here, before continuation of the downwards momentum. Overall -> alts (smaller ones) continue to do well.”
Image Courtesy of Crypto Michael. Chart via TradingView.
BTC Looks “Fragile” Following Overnight Decline
“Cloud still doing its thing. Currently keeping price (1h) below it acting as resistance – will look for scalp entries once we chill back inside/above it. Till then, looks a bit fragile,” he explained.
Image Courtesy of Teddy. Chart via TradingView.
Where Bitcoin trends throughout the coming days will likely offer investors significant insights into where it may head in the weeks to come.
Featured image from Unsplash. Charts from TradingView.