Bitcoin is flashing some tempered signs of strength right now as it attempts to push up towards $9,300.
This comes after an extended period of trading at $9,100 and seems to mark an extension of the momentum that the crypto first incurred when it bounced from its recent lows of $8,900 last week.
This momentum – although positive on a short time frame – is not emblematic of any sort of significant shift in the benchmark cryptocurrency’s underlying trend.
One prominent analyst is now noting that he believes there are several factors that show Bitcoin is “exhausted” from a mid-term standpoint, signaling that further downside could be imminent in the days and weeks ahead.
He explains that this could lead the crypto as low as $8,090 in the near-term, with this being a major support region that could allow it to climb significantly higher.
Bitcoin Pushes Towards $9,300 as Buyers Generate Some Momentum
At the time of writing, Bitcoin is trading up just under 2% at its current price of $9,290. The crypto has been slowly climbing higher throughout the day, but now appears to be finding some resistance.
This short-term uptrend comes just after it posted its monthly candle for June, with this monthly close pointing to significant indecisiveness amongst both its buyers and sellers.
If bulls continue pushing the crypto higher, the next crucial resistance area to closely observe sits around $9,700 and extends through $10,000. BTC has been rejected within the region on countless occasions over the past couple of months.
Unless there is some fundamental shift that causes a massive influx of buying pressure, it remains unclear as to what could catalyze a movement past this level.
Nik Patel – a popular crypto trader – explained in a blog post that one a short time frame the crypto is showing signs of weakness, particularly due to its recent rejection at $9,800.
“Turning to the daily, the lack of follow-through after the push up into short-term trendline resistance from earlier in the month was quite telling, with price falling off in subsequent days, albeit on declining volume,” he noted, referencing last week’s pump to highs of $9,800.
Image Courtesy of Nik Patel. Chart via TradingView.
BTC Likely to See $8,000 in Near-Term
As for where this weakness could lead the cryptocurrency in the coming few weeks and months, it may slide towards $8,000 before finding any robust support.
Patel also mused this possibility, explaining that a defense of this level would lead him to flip long on Bitcoin.
“I would absolutely not be surprised to see a breakdown here, despite the modest exhaustion signs, and I have marked out a possible trajectory into the $8k area that would sweep the May low and range support, as well as the 200dMA,” he said.
Featured image from Shutterstock. Charts from TradingView.