Bitcoin Still Looks Bearish Despite Climb to $8,600, Claims Analyst
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.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.