After facing a strong bout of selling pressure earlier today, Bitcoin’s bulls were able to garner some strength that has sent the entire crypto markets climbing slightly higher today.
Importantly, analysts are now noting that this slight climb may have been sparked by BTC touching a critical technical support level that has historically sparked massive price rallies, including the one seen earlier this year.
Bitcoin Dips Below $9,700 Before Finding Support
At the time of writing, Bitcoin is trading at just below $9,800, and is down significantly from its daily highs of over $10,000.
Over the past several weeks Bitcoin has been consistently setting lower highs and has failed to make any meaningful upwards price movements that provide any sort of technical relief for the cryptocurrency.
The recent bout of selling pressure first began nearly one week ago, when BTC sharply rose to over $11,000, which was closely followed by a sharp selloff that sent the cryptocurrency reeling down to its recent lows.
This move was simply an extension of the downwards momentum that was first incurred in late-June when Bitcoin concluded its parabolic rally with a sharp movement up towards $13,800, which was followed by a massive selloff that has given bears a significant edge over BTC’s bulls.
Importantly, it does seem as though $9,600 is a key level of support for Bitcoin in the near-term, as it has consistently found support each time it dipped into this region.
Technical Support Level Could Spark Massive Uptrend
Although Bitcoin’s current price situation looks somewhat dire, analysts are noting that it is rapidly nearing a technical level that has historically acted as strong support and has even sparked massive rallies.
Omz, a cryptocurrency analyst on Twitter, spoke about this formation in a recent tweet, explaining that BTC is currently pushing against its ichimoku cloud on the daily chart, which was the support line that sparked the rally that led BTC up from its recent lows of $4,000.
“$BTC 2019 vs 2017: First time since $4k that we are testing the ichimoku cloud on the daily chart. I find this very notable… in the 2017 bull market, the daily ichimoku cloud served as major support and led to a new rally on every cloud test,” he noted.
As the day and week wrap up, how Bitcoin responds to this level will serve as a key indicator that tells traders and investors alike whether further gains are imminent.