Bitcoin (BTC) was once again caught in a wave of side transactions over the past day, which came close to the recent breakout of the cryptocurrency that propelled it to- above its resistance around $ 8,900.
A leading analyst now notes that Bitcoin is trading just a hair below a key resistance level that has suppressed its price action in the past day.
If the benchmark cryptocurrency does not close above this level today, the cryptocurrency could be positioned to see a significant sale that will bring it back into the $ 8,000 region.
Bitcoin stable around $ 9,000 but struggles to gain ground
As of this writing, Bitcoin is trading slightly at its current price of $ 9,070, which marks a slight drop from the daily highs of $ 9,150 set earlier this morning.
Today’s lateral trading marks an extension of the one that was initiated for the first time yesterday after the explosion of the cryptocurrency from its prolonged consolidation phase around $ 8,700.
Unfortunately for buyers, this breakout rally was rather weak, and the lack of follow-up seems to clear up an underlying weakness that could mean that further declines are imminent.
Bitcoin’s recent decline from its recent highs of $ 9,200 has hurt its market structure, as a prominent cryptocurrency analyst now notes that it is waiting for BTC to confirm a potentially bearish formation of “pincers”. epilating “that she trained on her daily graphic work.
Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet referring to a graph showing the emerging formation.
“Bitcoin every day – on the lookout for a potential tweezer peak after a $ 8,400 rally,” he noted.
$ BTC #Bitcoin every day – On the lookout for a pair of tweezers after a rally from $ 8,400 pic.twitter.com/J6JYOIPRAz
– Grands Cheds (@BigCheds) March 6, 2020
Here is the key level that BTC must close to avoid significant inconvenience
If Bitcoin bulls want to invalidate the bearish notes he has expressed, it is imperative that they push him above $ 9,150.
Crypto Michaël, a popular cryptocurrency analyst and former full-time trader on the Amsterdam Stock Exchange, explained that without a sustained close above this level, he thinks the BTC could return to around $ 8,900 before finding significant support.
“Bitcoin: this is the same as earlier today. Not yet closed above $ 9,150. Could retest the support area from $ 8,925 to $ 8,950, which I have been looking for for a long time. Main target area then $ 9,300 to $ 9,400, ”he explained, pointing to the graph below.
This one has the same appearance as before.
Not yet closed above $ 9,150.
Could retest the support area from $ 8,925 to $ 8,950, which I have been looking for for a long time.
Main target area, then $ 9,300-9,400. pic.twitter.com/donkifwrkf
– Crypto Michaël (@CryptoMichNL) March 6, 2020
The daily closeout coming today should provide valuable insight into the direction to take for Bitcoin and the aggregated markets, as a push beyond $ 9,150 would suggest further hikes are imminent, while rejection here could mean that further declines are imminent.
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