Bitcoin has shown signs of immense strength in recent days as it moves toward the $9,000 region.
Although on the surface this movement appears to be bullish, it is important to note that the crypto currency is now encountering strong resistance. A rejection here could ultimately result in the currency taking massive losses in the coming days and weeks.
This potentially imminent decline could wipe out virtually all the gains made by the recent upward trend.
One analyst believes that it could even lead to a full downtrend if buyers are unable to support the $9,100 crypto.
Bitcoin rises to $9,500 with increasing upward momentum
At the time of writing, Bitcoin, at its current price of USD 9 460, is trading at just over 3 %. This represents a remarkable rebound from the crypto currency’s recent lows of $8,800, which were set earlier this week.
After the recent series of refusals of $10,000, the BTC has had difficulty in achieving any significant momentum in the period following the recent series of refusals of $10,000. However, today’s rise could allow it to reach these highs again.
In the short term, analysts are cautious about being overly optimistic about Bitcoin, as the company is currently encountering strong resistance that could ultimately lead to large losses.
It appears that this resistance exists around $9,500 and another denial here could be enough to spark a full trace.
A popular pseudonymous trader talked about this in a tweet and explained to his followers that there are some factors that indicate that cryptography is basically weak.
He points to the fact that the Crypto is currently trading at its highs, is below an important trend line, and is encountering strong resistance as reasons for its bearishness.
“BTC – Still flat. Areas of interest: * 94 – ’95 * Peaks of the range * Trend line bottom * Any sign of weakness and not holding the 91 – then a flip short can occur,” he explained, referring to the target of $8,300 on the chart below.
Image courtesy of TraderXO
BTC is rapidly approaching the critical end of the month
Another analyst recently stated that Bitcoin is fast approaching an important monthly close that could have a strong impact on where it goes during the summer months.
He notes that Bitcoin has not closed above $9,360 in nearly 12 months, and adds that previous denials at this level have catalyzed massive declines.
“People referring to the importance of this BTC level, so I thought I’d give you the monthly overview. We haven’t had a monthly statement on 9360 in almost 12 months. Rejections from that level have resulted in tests of $6,000 and eventually $3,000. The 4-hour range is jumping around this level,” he explained.
Image courtesy of Cold Blooded Shiller
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