- Bitcoin has been facing some intense resistance throughout the past few days and weeks, which has been suppressing its growth and sparking multiple strong rejections
- The selling pressure found within the mid-to-upper $19,000 region has been quite intense, and may continue stunting its growth in the mid-term
- One trader believes that any continued near-term weakness will likely cause it to see significantly further downside in the mid-term
- This is because it is now trading just above a crucial technical support level that has held strong throughout its entire uptrend
- A break below this could result in it seeing notable losses in the near-term
- That said, the overnight response to this level does seem to be working in bulls’ favor
Bitcoin has been facing immense turbulence ever since its price reached the mid-$19,000 region. Although many investors expected it to rally after tapping these highs, the selling pressure here proved too intense.
This has resulted in BTC seeing multiple consolidation phases as well as multiple strong selloffs. So long as this trend persists in the mid-term, BTC will likely drift lower before reaching a level with enough support to spark a long-lasting uptrend.
One trader explained that this latest move lower “annihilated” Bitcoin’s support, leaving the bottom of its cloud as the last crucial support.
Bitcoin Plunges as Upwards Momentum Falters
At the time of writing, Bitcoin is trading up just under 1% at its current price of $18,450. This marks a notable decline from weekly highs of $19,400.
It also marks a slight rebound from its overnight lows of $17,640 that were tapped during the selloff.
The rebound from this level was both intense and bullish, but it still has a way to go before it can see any serious momentum in the mid-term.
Trader Claims This Support Marks the Last Straw for BTC
One trader explained in a recent tweet that Bitcoin is now in a precarious position, as its last crucial support level in the short-term marks the bottom of its cloud, which sits at roughly $17,400.
“Support was clearly annihilated. Price soon to test the support of cloud again, will be longing the rest with invalidation below,” he said while pointing to the below chart.
Image Courtesy of Teddy. Source: BTCUSD on TradingView.
The fact that Bitcoin posted a strong reaction to $17,700 is a positive sign, but any faltering momentum around its current price could lead it lower – potentially forcing it to touch the bottom of its cloud.
Featured image from Unsplash. Charts from TradingView.
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Author: Cole Petersen