- Bitcoin has once again faced a massive influx of selling pressure that caused its price to dip back towards its key support at $10,000
- The cryptocurrency is navigating beneath this level, which means that it may soon once again test its critical support at $9,900
- The multiple tests of this level that it has undergone in recent times seems to indicate that significant downside could be imminent
- One analyst is noting that a failure to break below this level could lead it straight into its CME gap at $9,700 before it can find any further support
Bitcoin and the aggregated crypto market have reverted the momentum that they started building yesterday. At this point, BTC was able to rally to $10,400, while other digital assets also saw some notable upside.
This movement was short-lived, however, and was quickly followed by a sharp retrace.
This retrace ultimately led the crypto as low as $9,950, which is around the price at which it is trading at presently.
One analyst is noting that a continued bout of trading around $10,000 could weaken this support level and cause it to plunge down to its CME gap at $9,700.
Bitcoin Fails to Maintain Momentum as Sellers Remain in Control
At the time of writing, Bitcoin is trading down just over 3% at its current price of $10,025. This is around the price at which it has been trading throughout the past few days.
Each dip below this level has been halted by the buying pressure at $9,900. If this level continues to stay strong support for the crypto, bulls will have to catalyze a sharp upside movement here in order to invalidate its downtrend.
Yesterday evening, the crypto rallied as high as $10,400 before losing its momentum. This marked a key liquidity region that bulls targeted before allowing sellers to regain control.
BTC Likely to Fill CME Gap as Selling Pressure Persists
One analyst believes that the unrelenting selling pressure witnessed by Bitcoin in recent weeks means that it may soon target a move to its CME gap around $9,700.
“Alongside with a bounce on the USD… BTC is showing weakness. Again hammering support, after taking liquidity at $10,400. Third/fourth test of this support, losing it = CME gap fill,” he explained.
Image Courtesy of Crypto Michael. Chart via TradingView.
The coming day or two will likely shine a light on whether or not bulls will be able to continue defending Bitcoin’s key $10,000 support level.
Featured image from Unsplash. Charts from TradingView.