Bitcoin’s bearishness yesterday has spilled over into today, leading the cryptocurrency to slowly drift lower today as its bulls struggle to garner enough support to propel BTC back into the coveted five figure price region.
This recent price action seems to have struck fear into the hearts of investors, as it could mean that the highly bullish market structure it has developed over the past several weeks will soon be invalidated.
Now, analysts are noting that there are a few key factors that could lead BTC to see further downside in the near-term, but it remains unclear as to whether or not this will be enough to invalidate its 2020 uptrend.
Bitcoin Remains Stuck Beneath $10,000 as Bears Build Strength
At the time of writing, Bitcoin is trading down 2.5% at its current price of $9,880, which marks a notable decline from daily highs of $10,200 that were set early yesterday morning just prior to the massive selloff that led it back into the four-figure price region.
This selloff came about after an extended period of BTC trading around $10,300, with many analysts previously noting that the bout of sideways trading was likely to result in a notable upwards movement.
Analysts are now noting, however, that Bitcoin’s inability to post any strong bounce in the time since its latest correction seems to spell trouble for what comes next.
Bagsy, a prominent cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that he is currently bear-biased.
“So far the bounce on BTC hasn’t been that impressive in comparison to prior corrections we’ve recently seen. I’m still in my short, my other asks haven’t yet filled. Could be wrong but I’d rather pay the price than simply not hedge at all,” he explained while pointing to the chart seen below.
So far the bounce on $BTC hasn’t been that impressive in comparison to prior corrections we’ve recently seen.
I’m still in my short, my other asks haven’t yet filled. Could be wrong but I’d rather pay the price than simply not hedge at all.
— Bagsy (@imBagsy) February 16, 2020
These Simple Factors Bolster BTC’s Bear Case
Bitcoin Jack, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that there are a few simple factors that suggest BTC will see further losses in the coming days and weeks.
“Reasons to be bearish: BTC lost parabolic accelerations > +requires confirmation, but looks weak. USDT dominance falling wedge > +target aligns with total mcap supports. Majors incl BTC at USD resistance. Total mcap weekly gravestone doji > +diagonal resistance,” he explained.
Total mcap weekly gravestone doji
> +diagonal resistance pic.twitter.com/qLM9Ai1yul
— //Bitcoin 𝕵ack (@BTC_JackSparrow) February 16, 2020
How Bitcoin responds to its current position at just below $10,000 should offer significant insight into the long-term significance of this recent correction.
Featured image from Shutterstock.