Bitcoin and the aggregated crypto markets have been facing increased volatility as of late, and following a sharp move towards $11,000 yesterday, BTC has been unable to garner any significant buying pressure and has been drifting lower.
Analysts are now noting that Bitcoin’s bears are ramping up the selling pressure, which could result in a bearish weekly candle close that could spell trouble for the cryptocurrency.
Bitcoin Drifts Lower After Sharp Rejection at $11,000
At the time of writing, Bitcoin is trading down over 2% at its current price of $10,430, which marks a significant decline from its 24-hour highs of over $11,000 that were set yesterday evening.
Currently, it does appear that BTC is finding some support around $10,400, but it is highly unlikely that the cryptocurrency incurs any significant buying pressure until it drops towards $10,000, which remains a key psychological price level for the crypto.
How Bitcoin ends the day is of critical importance for how it trades in the week ahead, as BTC is about to close its weekly candle.
Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about this close in a recent tweet, noting that this selloff is seller’s attempt to form a weak weekly candle for BTC.
“$BTC #Bitcoin 4 hour – Bears stepping up pressure as we head into the week’s close,” he said while referencing the below chart.
BTC Daily EMAs Form Bear Cross; Are Further Losses Imminent?
Notably, this recent sell off has done some technical damage to Bitcoin, as its daily EMAs are now forming an intra-day bear cross which could mean that further losses are imminent.
Chonis Trading, another popular crypto analyst on Twitter, spoke about this formation in a recent tweet, noting that bulls have historically ramped up the buying pressure in an effort to stop this pattern from forming.
“$BTC – daily EMA’s 12,26 once again in an intra-day Bear cross…the #bitcoin Bulls we able to step in a few days ago and save it…if it closes this way it would be the first time since February, and would be very notable,” he explained.
Although it remains unclear as to whether or not bears will soon take full control of Bitcoin and send its price reeling lower, it is important to note that it is still trading well off of its weekly lows of $9,100.