After surging towards $9,300 yesterday, Bitcoin’s bulls have once again surrendered to bears, leading BTC to plummet back below its key support level at $9,000. This overnight movement has once again led the cryptocurrency back down to its previous support level at $8,700, and it is showing few signs of having any strength at the moment.
Analysts are now noting that $8,700 could be an ideal region for traders to enter fresh longs, but that a decisive break below this level could spark a sharp selloff that sends BTC towards $8,100.
Bitcoin Plummets Below $9,000 After Fleeting Bullish Movement
At the time of writing, Bitcoin is trading down over 1% at its current price of $8,740, which marks a notable drop from its daily highs of over $9,300 that were briefly touched during the fleeting rally that occurred yesterday.
The Cryptomist, a popular cryptocurrency analyst on Twitter, explained that the rejection at $9,300 that occurred yesterday was the result of BTC hitting the upper boundary of the descending pennant that it is currently trading within.
“$BTC: And there is the rejection!” She said while pointing to chart seen below.
Analyst: BTC May Be Positioned for Further Gains if it Holds Above $8,700
Loma, another poplar cryptocurrency analyst, explained in a recent tweet that Bitcoin may surge significantly higher in the near-term if it holds above $8,700, further adding that a drop below this level could spark a significant sell-off that sends BTC reeling to $8,100.
“$BTC: Much like $9,100 was a good short R:R-wise, I think $8,700 is a good long R:R-wise. Watching this closely, if we nuke through this support I’d say we’re going to ~$8,100,” he said while pointing to the chart seen below.
Much like $9,100 was a good short R:R-wise, I think $8,700 is a good long R:R-wise.
Watching this closely, if we nuke through this support I'd say we're going to ~$8,100.
— Loma (@LomahCrypto) November 11, 2019
In the coming hours and days, Bitcoin’s response to its immediate support level will likely elucidate how it will trend in the near-term, as it may be able to once again climb back above $9,000 if bulls garner enough strength to hold BTC above $8,700.
Source: News Btc