- Bitcoin has been facing unusually strong selling pressure throughout the past few hours, which appears to be coming from multiple large mining pools
- This caused the price of BTC to crater, dropping as low as $10,700 before finding some support that allowed it to climb significantly higher
- One analyst is now noting that this latest decline struck a blow to its technical outlook, leading him to set his sights at $9,600
- A decline to these lows would be significant but may be followed by massive upside
Bitcoin and the entire cryptocurrency market have been flashing some signs of weakness throughout the past several hours, with BTC plunging 5% while the rest of the market tanks in tandem.
This latest decline struck a heavy blow to the market’s strong uptrend seen throughout the past several days and weeks.
Analysts are now noting that the cryptocurrency may need to decline significantly further before its descent is able to slow, which could mean that a movement to the sub-$10,000 region is imminent in the near-term.
Bitcoin Plunges Below $11,000 as Selling Pressure from Miners Grows
At the time of writing, Bitcoin is trading down nearly 5% at its current price of $10,850. This is around the price at which it has been trading throughout the past few days.
Analysts are noting that where it trends in the near-term may depend largely on whether or not it can push back above $11,000, as a move above this level would be technically significant.
If this level is flipped into support in the near-term, it may provide the benchmark cryptocurrency with a launchpad for a sharp rebound.
Much of this selling pressure does appear to be coming from miners, as multiple large pools began transferring their holdings to exchanges today.
BTC to Target $9,600 – Claims Fund Manager
One bearish near-term scenario for Bitcoin is if it rejects at $11,000, as this would confirm that its previous support has flipped to resistance.
This may be a realistic possibility, as one fund manager is now noting that he is watching for a movement to $9,600 before he flips long on the cryptocurrency.
“We’ll get a glorious BTC long in at 9.6k okay?” he said while pointing to the below chart, which shows the lack of support directly below BTC’s current price.
Image Courtesy of Mohit Sorout. Chart via TradingView.
Whether or not Bitcoin can push towards – and above – $11,000 in the near-term may be the factor that determines where it trends next.
Featured image from Unsplash. Charts from TradingView.