- Following an extended bout of sideways trading within the $9,000 region, Bitcoin has now firmly broke below this range as it trades around $8,800
- Although the crypto has ardently defended its near-term support, its technical outlook does appear to be rapidly degrading
- Some analysts are even noting that its latest breakdown has opened the gates for it to see a movement that leads it as low as $5,900 in the weeks and months ahead
Bitcoin has seen much of its recently incurred technical strength degrade over the past 48 hours, as its ongoing break below $9,000 following a recent rejection at $10,000 is a dire sign.
It now appears that the crypto could soon target significantly lower lows if it is unable to garner any upwards momentum in the near-term.
One technical pattern even indicates that a movement as low as $5,900 is in the cards.
Bitcoin Sees Degrading Technical Strength After Sustained Move Below $9,000
Yesterday Bitcoin faced a sharp selloff that led it to decline from $9,100 to lows of $8,700. It was able to find some strong support here that ultimately allowed it to climb significantly higher.
The cryptocurrency has reclaimed its previous support at $8,800, but the buying pressure here has not yet been enough to catalyze any sharp movement back into the $9,000 region.
This ongoing downtrend has come about after BTC posted multiple firm rejections at $10,000, which pointed to some significant underlying weakness amongst buyers.
Analysts do believe that the cryptocurrency’s mid-term trend has now shifted in favor of bears, opening the gates for it to see a notable downtrend in the weeks ahead.
One popular analyst spoke about this in a recent tweet, explaining that he will now be looking for short opportunities going forward – with targets set at roughly $7,300 and $6,700.
“Likely done with any longs outside of intraday plays, i.e. longer swing positions, until we put in some type of strong PA down in blue. Call a spade a spade. Bitcoin is pretty formulaic, lose black and you are coming down to ugly numbers,” he said while pointing to the chart seen below.
BTC Could be Poised to See a Massive Decline
Although the aforementioned analyst noted that Bitcoin’s decline could lead it to lows of $6,700, another trader is explaining that one technical indicator suggests a movement to $5,900 could be imminent.
He points to two band formations on the crypto’s chart, noting that a rejection at the upper band signals that it could soon decline to the lower boundary.
“First clear close below the average for BTC. Bottom band target comes in at $7k with a double touch target looking closer to $5.9k. And yes, we typically do band to band runs.”
Featured image from Shutterstock.
Credit: Source link