Bitcoin has seen some mixed price action throughout the past several days and weeks, struggling to garner any sustained buying pressure as its price hovers just above its crucial support between $ 9,900 and $ 10,000.
The crypto has been trading above these levels throughout the past couple of days, but the selling pressure appears to be ramping up.
One analyst is even noting that the failed breakout that took place today has opened the gates for BTC to see a sharp downswing towards $ 9,600 – which will likely send shockwaves throughout the market and create a major headwind for mid-sized and small-sized altcoins.
Another trader is noting that in order for this potential near-term weakness to be fully invalidated, Bitcoin needs to fly past $ 11,700. A failure to recapture this level in the coming weeks could be grave and lead to significantly further losses in the near-term.
Bitcoin Maintains Above $ 10,000 as Weakness Grows
At the time of writing, Bitcoin is trading up marginally at its current price of $ 10,185. This is around the price at which it has been trading throughout the past several days, with buyers being unable to catalyze any sharp momentum.
In the near-term, in order for the cryptocurrency to see any significant upside, it is imperative that bulls continue defending $ 10,000.
Any sharp dip below this level could lead to a selloff that sends it lower in the days and weeks ahead.
One analyst does believe that a break below this support is imminent, as the failed breakout seen today when BTC pushed to highs of $ 10,300 does indicate that a move towards $ 9,600 could come about at some point this week.
“That breakout failed. I’m now heavy swing short on both BTC & ETH. BTC to 9600. ETH to $ 290, possibly 250,” he explained.
Image Courtesy of Byzantine General. Chart via TradingView.
Here’s the Key Level BTC Must Break to See Significantly Further Upside
In order for Bitcoin’s macro uptrend to remain intact, it is imperative that buyers ultimately propel it back above $ 11,700 in the mid-term.
“Goes to show you how relevant 11,700 still is for the greater trend,” one analyst said while pointing to the below chart.
Image Courtesy of Teddy. Chart via TradingView.
Because the support at $ 10,000 is quite strong, there is a possibility that Bitcoin will kick off a consolidation phase that subsequently allows altcoins to continue posting notable gains.
Any sustained decline beneath $ 10,000, however, could put an end to the bull run that smaller crypto assets have seen as of late.
Featured image from Unsplash. Chart via TradingView.