Bitcoin’s buyers attempted to spark a rally yesterday but were stopped short when it was rejected at $9,300
The crypto has since been trading directly beneath this level, struggling to garner any further buying pressure
This resistance coincides closely with a critical technical level that buyers have been struggling to surmount
It does appear that the crypto could be positioned to see further downside in the days ahead if buyers fail to break this resistance
After incurring some tempered momentum yesterday, Bitcoin has once again extended its bout of sideways trading as it hovers within the lower-$9,000 region.
The crypto’s bulls did attempt to spark some momentum yesterday but were stopped short at $9,300.
How the crypto trends next could largely depend on its reaction to this level, as it seems to coincide closely with its 200-day EMA.
Because this is a crucial technical level, a failure to break above this could cause it to see significant losses in the days ahead.
One analyst is even noting that Bitcoin is in a “bounce or die” situation presently.
Bitcoin Faces Rejection at Crucial Technical Level
At the time of writing, Bitcoin is trading up marginally at its current price of $9,250. This is around the level at which it has been trading for the past day.
Yesterday, buyers stepped up and pushed the crypto as high as $9,300. Shortly after touching this level, it faced a rejection that led it to decline slightly.
It is important to consider that $9,300 is around where the crypto’s 200-day EMA currently sits, making it vital that buyers surmount this level.
The fact that the rejection at this level yesterday was tempered and only caused the crypto to retreat slightly, it is possible that a break above it is imminent.
One crypto analyst spoke about this importance of this level in a recent tweet.
He explained that Bitcoin is in a “bounce or die” position currently, with it now resting on top of its 21-day EMA.
“4h was rejected from resistance of cloud (200 ema). Now resting on 21ema – bounce or die,” he noted.
Image courtesy of Teddy. Chart via TradingView.
Potential Distribution Pattern Signals Downside is Imminent
Analysts have been debating whether or not Bitcoin’s recent price action has been symbolic of bull-favoring accumulation or bear-favoring distribution.
One top trader does believe the signs all point to its range-bound trading being distribution, which could mean further downside is imminent.
The trader also notes that BTC’s volume over the past few weeks shows that buyers lack strength.
“BTC: Struggling to see the case for reaccumulation as opposed to distribution. If there is one its very weak. Volume profile is quite telling throughout this whole range,” he said.
Featured image from Shutterstock.
Charts from TradingView.