Bitcoin faced a brutal rejection at just below $9,400 earlier this morning. This caused the cryptocurrency’s price to reel lower, and bulls are now attempting to defend a crucial support level.
BTC’s latest bout of volatile trading comes as the crypto’s weekly candle close is fast approaching, making the coming few hours potentially critical for how it trends in the week ahead.
The swift rejection faced overnight caused the benchmark cryptocurrency to decline as low as $9,100, but buyers quickly stepped up and boosted it back above its crucial near-term support at $9,200.
Bulls are now ardently defending this level, which has been established as support in the time following the rejection seen at $9,500 earlier this past week.
Because BTC has consistently failed to garner any strong upwards momentum and appears to set lower highs on a weekly basis, it does seem as though bears have a significant edge over bulls.
Despite this, some analysts still remain bullish on the crypto, pointing to its ability to remain above its horizontal support and a multi-month trendline as positive factors to consider.
Bitcoin Flashes Signs of Weakness Following Overnight Rejection
At the time of writing, Bitcoin is trading down marginally at its current price of $9,220. This marks a slight climb from daily lows of $9,100 that were set earlier this morning.
Currently, the cryptocurrency’s buyers are attempting to thwart bears from invaliding its $9,200 support.
Earlier this morning, BTC pushed as high as $9,350 before facing a harsh rejection that led it to its daily lows.
If this rejection causes the buying pressure at $9,200 to dissolve, bears may be able to push it down towards $9,000 before it can find any further support.
One analyst spoke about the key levels he is currently watching, pointing to a recently developed range between $9,030 and $9,530.
The chart he offers – as seen below – indicates that Bitcoin’s reaction to these levels will set the tone for where it trends next.
Image Courtesy of Mohit Sorout. Chart via TradingView.
BTC May Remain in Firm Bull Territory Because of These Factors
Another analyst recently explained that Bitcoin remains in bull territory so long as it trades above its horizontal support and a critical descending trendline that it recently broke above.
The support level he speaks of sits around $9,200, and the descending trendline is currently just below this price level.
“Technically above both horizontal and diagonal resistance – bias is bullish. However it is Sunday, expect weekend [volatility] AKA both long and shorts will getting brutally liquidated,” he noted.
Image Courtesy of Teddy. Chart via TradingView.
How Bitcoin trends in the coming hours as the weekly candle close approaches should provide insight into how it will trend in the days ahead.
Featured image from Shutterstock. Charts from TradingView.