Bitcoin Price Plunges as Bulls Fail to Break One Crucial Level; What’s Next?

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• It has been a rocky past few days for Bitcoin, with the crypto seeing mixed price action that has muddied the clarity that investors previously had regarding its trend
• The selling pressure it has been facing over the past few days and weeks has been quite intense, making it increasingly unclear as to where it may trend in the days and weeks ahead
• One trader explained in a recent tweet that he is now watching for some notable downside, explaining that BTC has been unable to break below a key resistance level
• Assuming that this descending resistance continues holding, it could result in the entire market seeing significantly further downside

Bitcoin has been leading the entire market to see mixed price action. While altcoins have thrived during Bitcoin’s period of sideways trading, BTC has been largely unable to gain any clear trend.

One factor to consider is the speed at which it has been rejected during each attempted rally. Even the “Elon Musk pump” could not shift its trend and push it past its key resistance.

This has led one trader to expect imminent downside, specifically pointing to the lower-$20,000 region as a target.

Bitcoin Struggles to Gain Momentum as Sellers Take the Wheel

At the time of writing, Bitcoin is trading down over 4% at its current price of $32,800, which marks a massive decline from its overnight highs of $34,200 set just a few hours ago.

The crypto has erased just about every pump seen throughout the past few weeks, which is a grim sign for bears.

Until it breaks a descending resistance line that it has formed, it may continue drifting lower.

Analyst Claims Larger Plunge Likely Imminent

While sharing his thoughts on Bitcoin’s current technical outlook, one analyst explained that he is watching for further near-term downside.

Specifically, he points to the lower-$20,000 region as an area where he has interest in buying.

“Why is CT overly bullish? I don’t get it, and i won’t until i see $36k cleared. Show me your bullish charts, if any.”

Image Courtesy of Wolf. Source: BTCUSD on TradingView.

The coming few days should shed some light on Bitcoin’s outlook and whether or not this recent weakness is emblematic of a pending drop to new local lows.

Featured image from Unsplash.
Charts from TradingView.

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