Bitcoin Faces “Weak” Selloff as Buyers Gear Up for a Push Higher
- Bitcoin’s price has stabilized following its recent bout of intense volatility
- This turbulence mostly favored bulls, as the crypto was able to rally as high as $11,100 before facing some heavy resistance that slowed its ascent
- Analysts are now widely noting that it may be poised to see some further weakness in the near-term
- That being said, the tempered reaction to the strong selling pressure in the lower $11,000 region does seem to be a positive sign for bulls
- One bearish analyst is saying that he is losing confidence in his short position due to the crypto’s current strength
Bitcoin and the aggregated cryptocurrency market have seen mixed price action in recent weeks.
Despite the strong selling pressure that has guided Bitcoin lower and ultimately forced it down to $9,900, the benchmark digital asset’s bulls have been able to step up and stop it from seeing any massive near-term downside.
While speaking about its near-term outlook, one bearish trader explained that the weak reaction to both the $11,100 rejection and present weakness in the stock market is making him lose confidence in his short positions.
This could indicate that a break above its key resistance level is imminent in the near-term.
Bitcoin Struggles to Break Above Key Resistance
At the time of writing, Bitcoin is trading down just over 1% at its current price of $10,783. This marks a slight decline from its daily highs of $11,100 that were tapped yesterday.
These highs coincided with a region of immense selling pressure, as this was a previous support level that became strong resistance once it was broken below a couple of weeks ago.
Where the cryptocurrency trends next will now depend largely on whether or not buyers can reclaim this critical price region.
Trader: BTC Bears Could be Losing Strength as Stability Mounts
One trader, who was bearish on Bitcoin as its price approached $11,000, explained in a recent tweet that the tempered reaction it has posted thus far to its $11,100 resistance points to mounting weakness amongst sellers.
“BTC: Yeah.. so this was not necessarily the reaction I wanted. Weak drive down initiated solely by traditional markets. Could do anything from here on out so I’ve been reducing size a bit for a $150-$200 gain…” he stated.
Image Courtesy of DonAlt. Chart via TradingView.
Unless bears step up and catalyze a sharp selloff in the near-term, it does appear that bulls are positioned to lay the groundwork for a push even higher.
Featured image from Shutterstock. Charts from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow