Bitcoin’s near-term outlook is growing gloomy as it continued trading within the mid-$9,000 region.
After attempting to break above $10,000 yesterday, the benchmark cryptocurrency is now facing heightened selling pressure that has led it down towards $9,500. The support here has been strong in the past, but it remains unclear as to whether it will remain that way in the near-term.
Analysts are now widely noting that the price action seen throughout the past couple of days has done some serious damage to its mid-term outlook.
This damage is primarily rooted in a bear-favoring distribution pattern that recently emerged, which has led some analysts to believe that its mid-term technical strength is now faltering.
As for how low this could lead the crypto, one analyst is offering a downside target within the $8,000 region.
Bitcoin Flashes Some Signs of Weakness as Momentum Falters
At the time of writing, Bitcoin is trading down just under 4% at its current price of $9,400. This marks a notable decline from daily highs of over $10,000 that were set around this time yesterday.
Analysts do believe that the cryptocurrency could be positioned to see further weakness due to its inability to maintain around its range-highs of $9,800.
The decline seen today led BTC to as low as $9,500 before it found some strong support. It is possible that the buying pressure here will slow its descent in the near-term.
The rejection at $10,000 seen yesterday was simply the latest in a series of rejections that have been seen over the past few months. If it is unable to stabilize above this price and surmount $10,500, it could be poised to see serious downside.
One analyst also noted that the recent price action seen by BTC seems to confirm that it has been forming a distribution pattern over the past several weeks and months.
“It certainly looks much more like distribution with today added in, the volume profile, and now structure break. Yesterday’s close pos deviation,” he said while pointing to the chart seen below.
Image Courtesy of Pentoshi
Here’s Where Analysts Think BTC Will Move Next
The distribution phase seen above does indicate that Bitcoin could soon decline as low as $7,000 in the weeks ahead – should the pattern be confirmed by a break below BTC’s range lows at $8,600.
Another analyst recently offered a grim outlook for where Bitcoin could trend in the coming weeks.
He notes that its inability to break above the upper-$9,000 region has severely degraded its technical strength, opening the gates for a decline to $8,100.
“Unless we start seeing acceptance above 9.9k this is what I see,” he said while pointing to the chart seen below.
Image Courtesy of George
Featured image from Shutterstock.
