Yesterday, Bitcoin faced a relatively strong rejection after its bulls attempted to spark a rally that sent it as high as $7,500 before it met insurmountable selling pressure that sparked a drop to lows of $7,300.
Following this recent rejection, Bitcoin has once again found itself caught within a firm bout of sideways trading around $7,300, and it has continued finding strong support within the lower-$7,000 region.
In spite of this support, analysts are noting that this recent rejection could spell trouble for the cryptocurrency, leading these analysts to widely set relatively low near-term price targets for BTC.
Bitcoin Likely to See Major Downside Following Yesterday’s Rejection
At the time of writing, Bitcoin is trading over 2% at its current price of $7,290, which marks a notable decline from its daily highs of $7,500 that were set during yesterday’s rally.
The rejection that the crypto incurred at this price level was the latest in a series of rejections that Bitcoin has been facing over the past several days and weeks, with every single attempt by bulls to push the crypto higher being met with significant selling pressure that leads to an instant rejection.
UB, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Bitcoin is going to visit its major support level around $7,030 in the near-term, which comes as its support around its current price levels begins fading.
“$BTC – I’m short from $7,330 avg. The trade was originally going to be a quick +2R day trade which is why I didn’t post it. Bitcoin is looking weak with the EQ providing little to no support on the way down. I’ll begin to take profit around the lows at $7030s or so,” he explained while pointing to the chart seen below.
$BTC – I'm short from $7,330 avg. The trade was originally going to be a quick +2R day trade which is why I didn't post it.
Bitcoin is looking weak with the EQ providing little to no support on the way down.
Late last week, Bitcoin did drop down to $7,000, although buyers were able to absorb the selling pressure that sparked this movement and helped prop the cryptocurrency’s price above this level.
It is important to note that the next visit to this level could mark the start of the next capitulatory drop, with Bitcoin Jack, another popular crypto analyst, explaining that he believes BTC could drop as low as $6,100 in the near-term.
“I’m taking a short on the corn,” he explained while pointing to a chart seen below, in which he further elaborates on his reasoning behind his analysis.
The coming days and hours are likely to offer insight into whether or not the next Bitcoin downtrend will translate into a bigger drop that leads it to set fresh multi-month lows, or if bulls will be able to hold the cryptocurrency above its key support levels.