Bitcoin has shown some continued signs of weakness today due to its inability to garner any clear upwards momentum
It is now hovering within the lower region of its long-held trading range, and it remains unclear as to just how long this support will last for
Its latest decline lower has caused it to grow weak from a technical perspective
One crucial indicator that has been bullish throughout the past several months just flipped bearish
This is the first time that this has occurred since just before the cryptocurrency saw its mid-March meltdown that caused it to reel from the $8,000 region to lows of $3,800
Bitcoin has seen degrading technical strength throughout the past several days and weeks. This weakness has come about as a result of it largely hovering above its lower range boundary over the past several days.
It hasn’t been able to post any decisive bounce from this region, despite briefly being pushed beneath its support.
In the near-term, how it trends next will undoubtedly be the result of its reaction to $9,000.
One indicator that just flipped bearish seems to suggest that a decline beneath this crucial support is imminent.
The last time this indicator flipped from bullish to bearish was right before Bitcoin crashed from over $8,000 to lows of $3,800 in March.
Bitcoin Grows Weak as Technical Outlook Degrades
At the time of writing, Bitcoin is trading down marginally at its current price of $9,200. This is around the level at which it has been trading over the past day.
It does appear that how it trends next will be largely correlated to how strong of a reaction it posts to the heavy support that exists just below where it is currently trading at.
One analyst is noting that one bearish scenario he is watching entails BTC retesting $9,500 to print a lower high, and then plunging down into the mid-$8,000 region.
“BTC LTF Update: This would be the bearish scenario that I would be watching to play out over the coming day… likely we could see another retest of $9500 as it prints another lower high… Watching this chart very closely,” he said.
Image Courtesy of Cactus. Chart via TradingView.
This Key Indicator Spells Trouble for Where BTC Goes Next
Ever since Bitcoin began rebounding from its mid-March lows, the benchmark cryptocurrency’s cloud indicator has been firmly bullish – helping it to establish a clear uptrend.
The inability to break above $10,000, and the multi-week bout of tight range-bound trading, has caused this indicator to flip bearish for the first time since before it crashed a few months ago.
One analyst put forth a chart showing this trend, marking the historical significance of a bearish cloud flip.
Image Courtesy of Teddy. Chart via TradingView.
Unless Bitcoin surges higher an invalidates this, July could prove to be a turbulent month.
Featured image from Shutterstock.
Chart via TradingView.