Bitcoin
These Factors Suggest Bitcoin is Building Pressure to Make a Massive Move
Cole Petersen | Sep 08, 2020 | 23:00
- Bitcoin is once again teetering on the brink of seeing some serious downside, as the cryptocurrency is struggling to hold above its key $9,900 support
- The benchmark crypto has yet to plunge beneath this level, but the chances of it being broken do appear to be growing by the hour
- Most investors are anticipating this to result in a move down towards its CME gap at $9,700, which has yet to be filled
- Filling this gap could lead many bears to flip bullish, thus boosting the crypto’s price higher
- That being said, one analyst is looking towards a variety of factors that suggest Bitcoin is building up pressure to make a massive movement
Bitcoin and the entire cryptocurrency market is currently experiencing some immense weakness, with BTC struggling to hold above its key support at $9,900 while most major altcoins post sizeable losses.
This comes after a long-held bout of sidewards trading between $10,000 and $10,300 and could simply mark an extension of this consolidation – if bulls can reclaim the five-figure price region.
One trader is pointing to a few factors that may indicate that a massive movement is on the horizon.
Bitcoin Struggles to Hold Above Crucial Support as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down over 4% at its current price of $9,970. This is around the price at which it has been trading throughout the past several days, with sellers being unable to shatter its $9,900 support.
That being said, the multiple tests that this level has undergone in recent times does indicate that a break below it may be imminent.
All eyes are now closely watching to see how BTC reacts to $10,000, as a break and hold above this level could be bullish, whereas a sustained bout of trading beneath it could result in it seeing further downside.
These Factors Suggest BTC is Building Up for a Massive Movement: Analyst
While speaking about Bitcoin’s current bout of trading above its key support, one analyst noted that Bitcoin’s sideways trading seems to suggest that a large movement is brewing.
He pointed to rising open interest on BitMEX as one factor supporting this notion.
“BTC grinding down in the 4 digits. Bitmex open interest significantly risen showing a lot of position taking. Not sure where we head next, it simply hints pressure is building and larger move likely, no directional bias. Bit scared if we don’t get a momentum break, react mode…”
How Bitcoin reacts to $10,000 should provide significant insight into its near-term trend.
Featured image from Unsplash. Pricing data from TradingView.
