Bitcoin has incurred some much-needed upwards momentum overnight as bulls ardently defend BTC from breaching below its current support region between $8,300 and $8,400. Today’s slight climb further confirms the validity of this support region, which needs to hold strong if bulls want to prevent the crypto from visiting the $7,000 region.
One analyst is now pointing out that Bitcoin needs to climb and close above $8,650 in order for bulls to have a chance of gaining control over the crypto’s near-term trend, and that a failure to do so could lead to further downside.
Bitcoin Climbs Above $8,600, But Further Bearishness May Be Inbound
At the time of writing, Bitcoin is trading up just under 1% at its current price of $8,620, which marks a decent climb from its recent lows of $8,300.
Over the past several days, BTC has consistently found strong buying pressure around $8,300, signaling that this price is a solid support level that could bolster the cryptocurrency’s price action in the coming days and weeks.
Prior to the crypto’s drop to $8,300 that occurred earlier this past week, BTC had been finding strong support around $8,700, and it is probable that this price level will now be a resistance region.
In order for a movement above this level to be sustained, analysts believe that the crypto needs to break above $8,650, as a failure to do so could mean that today’s climb will be fleeting.
Cantering Clark, a popular cryptocurrency analyst spoke about the importance of this level in a recent tweet, explaining that none of Bitcoin’s technical indicators are currently painting a bullish picture for the crypto’s near-term price action.
“Not attractive yet. Not by positioning indications, PA, or volumes. So far for similar deltas buyers are able to move price less than sellers. A small pop is meaningless. It looks like an aggressive short got peeled shorting the break. Acceptance > 8650 and maybe,” he said while referencing the chart seen below.
If Bitcoin is to close above this price level, bulls will likely target $9,000, as this was a long-held support region following the crypto’s meteoric rally from $7,300 to $10,600, and a decisive break above this level could help lead the crypto significantly higher as 2019 begins coming to a close.