Bitcoin has seen some bear-favoring turbulence over the past week, with its recent break below $10,000 sparking a bout of capitulation that led it to lows of $9,200, from which point it has struggled to garner any sustainable upwards momentum.
This intense selling pressure has cause BTC bulls to cave in, as they are currently struggling to defend the key support levels that the cryptocurrency previously formed.
In the near-term, it does appear that the crypto is bound to see further downside, and one top analyst is noting that it is “cooked” if it is unable to close above a critical level before the end of the week.
Bitcoin Plummets After Breaking Below Key Resistance
Currently, Bitcoin is trading down over 3% at its current price of $9,350, which marks a notable decline from daily highs of $9,700, and an even more significant decline from one-week highs of $10,200.
Last Wednesday, Bitcoin was expressing notable stability above $10,000, with its sharp “flash crash” doing severe technical damage that has appeared to invalidate the cryptocurrency’s bullish market structure.
Following the cryptocurrency’s bounce from lows of $9,200, it appeared to have established strong support at $9,500, but today’s dip has marked a decisive break below this level, which is a bear-favoring signal.
HornHairs, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that a confirmed support-resistance flip of this level will lead him to open fresh short positions.
“BTC 4H: Price closed below the weekly S/R level on the 4H, resulting in a flush down. We’re hovering just above last week’s low, likely we take that out before a bounce. This level lines up with 1D demand. As it stands, I’ll look for shorts at the 1W S/R flip ($9500),” he explained while pointing to the chart seen below.
$BTC 4H
Price closed below the weekly S/R level on the 4H, resulting in a flush down.
We're hovering just above last week's low, likely we take that out before a bounce. This level lines up with 1D demand.
As it stands, I'll look for shorts at the 1W S/R flip ($9500).#BTC pic.twitter.com/V1kY7EZAbO
— HornHairs ? (@CryptoHornHairs) February 25, 2020
HornHairs isn’t the only analyst that is bearish on BTC. DonAlt – another top analyst – explained that a failure for BTC to close above its weekly support at $9,500 would signal that BTC is “cooked.”
“Seeing a lot of DonAlt was right tweets. We’re still at weekly support. If we close above it this week I very likely am wrong. Chasing a setup when it’s already hit support is a good way to get rekt. That said if we close below I think it’s cooked,” he explained.
Seeing a lot of DonAlt was right tweets.
We're still at weekly support.
If we close above it this week I very likely am wrong.
Chasing a setup when it's already hit support is a good way to get rekt.That said if we close below I think it's cooked. pic.twitter.com/SHsp3a02J6
— DonAlt (@CryptoDonAlt) February 25, 2020
The coming several should provide some insight into where the crypto markets are heading next, as where the crypto closes its weekly candle could set the tone for which direction the markets will trend in the months ahead.
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