Bitcoin

Here’s Why Analysts Expect Bitcoin to Plunge Lower in the Near-Term

Cole Petersen | Nov 10, 2020 | 18:00

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• It has been a relatively uneventful day for Bitcoin, with the benchmark crypto ranging sideways following the immense decline seen yesterday that sent it down to $14,800
• The buying pressure at these lows proved to be too much for bears to handle and instantly sparked a “V-shaped” recovery
• BTC is now hovering within the lower-$15,000 region, struggling to gain any upwards momentum as its buyers and sellers reach an impasse
• This trend of stability may not last for too long, as one analyst is pointing to a trend that indicates downside is imminent

Bitcoin and the rest of the cryptocurrency market have seen a quiet bout of trading throughout the past 12-hours, with bulls and bears reaching an impasse as BTC consolidates.

This current stability came about shortly after the crypto saw a sharp selloff yesterday, which was rapidly absorbed by bulls.

Where BTC trends next will depend largely on whether or not it can hold above its support in the lower-$15,000 region.

One trader does not think this is a realistic possibility and expects it to see a sharp move lower after it tests one key resistance level.

Bitcoin Struggles to Gain Momentum as Bears Step Up

Throughout the course of Bitcoin’s recent multi-week uptrend, bears have done little to slow its ascent, with each selloff being short-lived and rapidly followed by it seeing new highs.

However, this trend could be shifting as Bitcoin has now posted multiple firm rejections at $16,000, with buyers being wholly unable to hold it around this level.

At the time of writing, Bitcoin is trading down marginally at its current price of $15,300. It has been consolidating here throughout the past day.

Where it trends next will likely depend on whether it can begin advancing towards $16,000 or see another influx of selling pressure.

BTC Likely to Face Downside If It Fails to Surmount $15,400 – Analyst 

One trader stated that Bitcoin is likely to see further downside if it cannot break and hold above $15,400.

He notes that although it could see upside if this level is broken above, the “downside path is the more likely outcome” for him.

“BTC struggling to get back above that $15,400 level. While that remains the case the downside path is the more likely outcome (for me). One of the few times the candle chart may be cleaner for me. Reclaim this and we’ll head for highs, reject and we may see a move to lows.”

Image Courtesy of Cold Blooded Shiller. Source: BTCUSD on TradingView.

The coming few days should provide insights into Bitcoin’s reaction to this crucial level that could set the tone for trends in the weeks ahead.

Featured image from Unsplash.
Charts from TradingView.