Bitcoin’s Price is Hovering Above “Last Ditch” Support Following Recent Selloff
- Bitcoin is currently teetering above its crucial support at $11,300
- This level has been holding strong over the past day, but an influx of selling pressure has put it at risk of being broken below in the near-term
- This level also happens to coincide with the benchmark crypto’s 200-day ema, which is a crucial technical level that must be defended
- If this technical and horizontal support is lost in the days ahead, BTC could be prone to seeing massive downside
Bitcoin is seeing heightened weakness as a result of its recent downtrend. This weakness has now put it at risk of breaking below a critical support level that has been guiding its uptrend throughout the past few weeks.
If buyers are unable to hold BTC above $11,300 over the coming few days, it may reel towards its next major support level around $10,000 before being able to find any meaningful support.
One analyst is specifically setting his sights on a movement towards $9,500 if it breaks down from here.
That being said, a continued defense of the crucial support that sits just below Bitcoin’s current price level could be all that is needed to spark the crypto’s next leg higher.
Bitcoin Taps Crucial Support Level as Selling Pressure Mounts
At the time of writing, Bitcoin is trading down marginally at its current price of $11,330.
This is around the price at which the cryptocurrency has been trading for the past day, with buyers ardently trying to absorb the heavy selling pressure that it has been facing around this price level.
It is important to note that this horizontal support also coincides with the cryptocurrency’s 200-day ema – a key technical level that has been helping to guide BTC’s uptrend.
One analyst pointed to this level in a recent tweet, noting that bulls are in a good position as long as Bitcoin holds above this level.
“Price still hanging on the 200ema. As long as price is above it, bulls can relax and they are still holding the trend….”
Image Courtesy of Teddy. Chart via TradingView.
Here’s How Low BTC May Plunge if It Losses This Level
If this critical support is lost in the days ahead as BTC faces heightened selling pressure, one analyst is noting that his bear-case suggests a move to $9,500 could ensue.
“The bull & bear scenario for BTC. Neither has confirmed yet for me – not taking any extra exposure to either side for now, neither am I reducing any exposure. Sitting on my hands,” he explained.
Image Courtesy of Bitcoin Jack. Chart via TradingView.
The coming few hours and days will be vital for understanding the validity of Bitcoin’s mid-term uptrend.
Featured image from Unsplash. Charts from TradingView.
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