After attempting to rally up towards $9,000 overnight, Bitcoin incurred a massive influx of selling pressure that sent its price reeling down to its previous trading range, which could mean that it will incur significantly further selling pressure in the near-future as bears attempt to push its price back to its range lows of $7,800.
In the near-term it is appearing to be increasingly probable that Bitcoin will extend its recent downtrend, and one prominent analyst is pointing to a technical formation that the crypto formed as a sign that further losses are imminent.
Bitcoin Reels Down from Daily Highs as Bears Build Strength
At the time of writing, Bitcoin is trading down 2% at its current price of $8,370, which marks a notable retrace from its daily highs of nearly $8,800 that were set last night just prior to the major drop that occurred today.
Prior to surging earlier this week, Bitcoin was caught within a relatively tight trading range between $7,800 and $8,400, and today’s drop has once again pushed its price back into this range, which may mean that it’s next target will be down at its range lows of $7,800.
Big Chonis, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin was rejected at its EMA 12 on its daily chart, which could be a bearish sign if it closes below this level again today.
“$BTC – Just as the first touch of the EMA12 was rejected on the daily… the first touch of the EMA26 with a similar rejection…another close below the EMA12 after achieving it as support would be a notably bearish sign,” he noted.
$BTC – Just as the first touch of the EMA12 was rejected on the daily… the first touch of the EMA26 with a similar rejection…another close below the EMA12 after achieving it as support would be a notably bearish sign … #bitcoin pic.twitter.com/fPYZHGQfJU
— Big Chonis Trading🍄 (@BigChonis) October 11, 2019
It is important to note that large buyers have not been phased by this period of consolidation, as data from Glassnodes shows that the number of Bitcoin wallet addresses holding over 1,000 BTC just surged to an all-time-high, although it remains unclear as to how many of these wallets are owned by exchanges.
“Number of #Bitcoin addresses holding more than 1000 $BTC,” they noted while pointing to the below chart.
Number of #Bitcoin addresses holding more than 1000 $BTC 👀 pic.twitter.com/SGdBXrob5e
— glassnode (@glassnode) October 11, 2019
The coming few days and weeks will likely elucidate where Bitcoin will head in the coming months, as its current trading range appears to be a critical pivoting point for the cryptocurrency.