Bitcoin’s bulls were greatly disappointed to see the strong rejection the cryptocurrency incurred at $9,200 following what appeared to be an incredibly strong rally yesterday evening.
The rejection at this level was drive by strong volume and shines a light on the fact that bears still have massive strength in spite of their recent weakness and may also suggest that these recent highs could be a mid-term top for the cryptocurrency.
Prominent analysts, however, are also noting that they believe Bitcoin’s market structure is still firmly bullish as long as it ends the day above $8,600, which means how it trades in the next few hours could be critical for its future trend.
Bitcoin Dumps to a Key Support Level, But the Bull Trend Isn’t Over Yet
Currently, Bitcoin is trading down just under 3% at its current price of $8,650, which marks a notable decline from its daily highs of $9,200.
Today’s vertical drop has not (as of yet) been enough to thwart the cryptocurrency’s mid-term uptrend, as it is currently trading at around where it was at just a few days ago.
While keeping this in mind, it grows clear that although the crypto is expressing some short-term bearishness, its market structure does appear to still be bullish and it may continue to climb higher in the near-term.
SmokeyXBT – a popular cryptocurrency trader on Twitter – spoke about this in a recent tweet, telling his followers that he believes drops like this one are typical in the crypto markets, and not enough to invalidate a mid-term trend.
“XBT Not sure about you guys but imo this is all pretty standard stuff what we’re seeing on Bitcoin and the bias is still bullish, not bearish like a lot of people seem to want to push here on CT,” he explained in a recent tweet.
Not sure about you guys but imo this is all pretty standard stuff what we're seeing on Bitcoin and the bias is still bullish, not bearish like a lot of people seem to want to push here on CT pic.twitter.com/Vk1P2JjfeJ
Luke Martin, another prominent analyst, did previously note that $8,600 is a key level for Bitcoin, so a break below this level prior to its daily and weekly close could signal that a deeper pullback is imminent.
“‘Close above 8600 leads to 9100 expansion.’ Wrapping this weekly $BTC outlook thread now that we’ve hit the targeted resistance & pulled back. Hope we get another trending market this week!” he noted while referencing previous tweets regarding the importance of the $8,600 level.
"Close above 8600 leads to 9100 expansion."
Wrapping this weekly $BTC outlook thread now that we've hit the targeted resistance & pulled back.