- Bitcoin witnessed an intense selloff today that came about after bulls once again failed to break above $13,800
- The selling pressure here has proven to be quite significant, and buyers’ inability to surmount it signals that it may mark a local top
- The crypto is now trading back down where it has been for the past week in the lower-$13,000 region
- Both bulls and bears have been unable to gain firm control over its short-term trend
- One trader is now noting that a decline towards $11,500 could come about in the near-term
- He believes that this decline will be followed by immense upside
Bitcoin and the rest of the cryptocurrency market have been caught within the throes of a sideways trading bout throughout the past few days and weeks, with buyers and sellers unable to control its mid-term trend.
Last week, the cryptocurrency was able to rally as high as $14,100, but the selling pressure here was rather intense and instantly forced it back below $13,800.
Despite closing its monthly candle above this level, it has been facing some intense inflows of selling pressure throughout the past few hours.
One analyst believes that this will mark the start of a decline that ultimately sends it reeling as low as $11,500.
Bitcoin Struggles to Gain Momentum as Sellers Force It Lower
At the time of writing, Bitcoin is trading down over 3% at its current price of $13,350. This marks a notable decline from its weekly highs of $14,100 and its daily highs of $13,900.
Where the crypto trends in the near-term will depend on how it responds to the support just below where it is currently trading at.
A break below the lower-$13,000 region could spark a selling frenzy that causes its $14,100 highs to mark a mid-term top.
Trader Claims Move to $11,500 is Imminent
One trader is now offering a grim outlook for the crypto, noting that a move to $11,500 may come about in the near-term before Bitcoin can gain any long-term support that sends it higher.
“BTC momentum continued to drop as we made the third leg higher. Short from $13,755. If we are to continue with the sell off I would expect the red box to hold as resistance given it’s importance as support on LTF. ($11,650). Looking to be a buyer at $11,500. No typo.”
Image Courtesy of Cold Blooded Shiller. Source: BTCUSD on TradingView.
Unless it sees a sharp rebound in the near-term that erases its recent losses, there’s a strong possibility that further downside is imminent for Bitcoin.
Featured image from Unsplash. Charts from TradingView.