- Bitcoin saw a sharp rise overnight that allowed it to firmly surmount the $9,000 region
- This upwards movement liquidated nearly $20 million in short positions, with buyers now attempting liquidate even more shorts in an attempt to fuel an uptrend
- The crypto has been rejected within the $9,200 region, however, which could halt its short-term uptrend
- Analysts are now also noting that heavy resistance just above Bitcoin’s current price level could be enough to fuel an immense downtrend
Bitcoin saw a sharp overnight rise that allowed it to venture into the $9,000 region once again. This movement came about after a prolonged period of rangebound trading at its key support level of $8,800.
Buyer’s defense of this level is an overtly bullish sign, as it signals that the cryptocurrency could be well positioned to climb higher in the near-term.
Despite this, its overnight uptrend did halt at $9,250 after buyers liquidated just under $20 million in short positions.
It now appears that the cryptocurrency could soon see further weakness as analysts note that it is likely to face insurmountable resistance within the $9,300 region.
Bitcoin Rallies Past $9,000 in Movement Fueled by Short Liquidations
At the time of writing, Bitcoin is trading up just under 4% at its current price of $9,150. This marks a slight decline from daily highs of $9,250 that were set at the peak of the movement.
It appears that the buyers who triggered this rally were bolstered by the continued defense of $8,800.
This level has been a significant support region on multiple occasions throughout the past several weeks and months, and it is imperative that buyers continue defending it, as a dip below this level could lead BTC to see tremendous losses.
This move also appears to have been fueled by a large number of liquidations. Data from Skew reveals that nearly $20 million in short positions were liquidated in the hour following this upswing.
Short-fueled movements are historically fleeting, which could be a grave sign for the longevity of this newly established uptrend.
BTC Approaches Heavy Resistance as Analysts Foresee a Massive Decline
Bitcoin is now rapidly approaching its next key resistance level at $9,360, with the amount of sell orders here potentially being enough to spark a massive selloff.
As for how far this selloff could lead the cryptocurrency, one analyst is noting that he believes that BTC will continue plunging lower until it reaches the lower-$8,000 region.
Today’s break above $9,000 is also sure to lead to a resurgence in the number of long positions.
These positions could provide sellers with fuel to spark a sharp decline once the crypto reaches its near-term resistance.
Featured image from Shutterstock.
