Bitcoin has been caught in a tight trading range for the past several days and weeks, and after incurring some bullish momentum yesterday that sent it to its upper range boundary, the cryptocurrency was rejected and is now nearing the bottom of its current trading range.
This rejection and the subsequent movement downwards has led analysts to set low near-term targets for the cryptocurrency.
Bitcoin Moves Towards Range Lows During Intraday Drop
BTC has been caught within a relatively tight trading range between $9,000 and $9,500 for the past several days and weeks, and the existence of this range was further confirmed yesterday when the crypto was rejected at the upper boundary of this trading range.
Although the crypto has been able to find some strong support around its current price levels, it has not yet tapped $9,000 since this range was formed, which makes it unclear as to just how strong this level will be in the case of further downside.
It does appear that at the moment Bitcoin is sitting right above its 200-day moving average, which has consistently proven to be a strong support level for the crypto.
Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying:
“$BTC #Bitcoin – Daily – Right at that MA 200 again.”
— Big Cheds (@BigCheds) November 7, 2019
BTC Likely to Tap $9,000 in Near Term as Bears Build Momentum
Other analysts do believe that it is probable that Bitcoin will tap its range low at $9,000 in the near-term, although it is unclear as to whether or not a break below its current support at its 200-day moving average will be enough to spark a bout of capitulation that causes it to fall below its range lows.
HornHairs, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting in the below chart that his short-term target is just a hair above $9,000.
“$BTC: Full size now (0.5% risk). Sellers showed strength on last push making a lower low and finishing the QM/over-under setup,” he said while pointing to the chart seen below.
Full size now (0.5% risk). Sellers showed strength on last push making a lower low and finishing the QM/over-under setup. pic.twitter.com/BlP6SRYOWc
— HornHairs 🌊 (@CryptoHornHairs) November 7, 2019
The coming hours will likely illuminate whether or not bulls will be able to support BTC’s price above its range lows, or if further losses are imminent.