Bitcoin Struggles to Hold Above $10,000 as Risk of Serious Downside Grows

• Bitcoin plunged overnight to lows of $9,900 once again, with bulls struggling to defend against it seeing further downside
• Analysts are widely noting that the cryptocurrency is now at risk of seeing even further downside in the near-term as it struggles to maintain above its crucial support
• One trader is noting that a continued bout of trading below $10,000 could strike a blow to the crypto’s technical structure
• He reckons that this will lead BTC down towards its next support around $9,600, with a defense of this level being critical for its mid-term outlook

Bitcoin has been seeing some turbulence throughout the past few days, with the cryptocurrency struggling to hold above $10,000 as bears attempt to invalidate the crypto’s mid-term uptrend.

This has caused it to erase the vast majority of the gains that it has been able to see throughout the past few months and has led analysts to forecast further near-term downside.

In the near-term, how BTC continues responding to $10,000 will be vital for understanding the cryptocurrency’s near-term outlook. A break back above this level may boost its short-term outlook and allow it to climb slightly higher in the near-term.

Bitcoin Struggles to Defense Key Support as Sellers Take Control

At the time of writing, Bitcoin is trading down just under 3% at its current price of $9,950. This is around the price at which it has been trading for the past few days.

Bulls have established the region between $9,900 and $10,000 as support, with each visit to this area being quickly absorbed by an influx of buying pressure.

It is important to note that this region does appear to be weakening, however, as the response by bulls to each visit here has grown tempered.

Analyst: BTC May Dive Towards $9,600 Before Finding Strong Support

Unless bulls can reclaim $10,000 in the coming few hours, there’s a strong possibility that a move down towards $9,600 is imminent. This is where its next key support level sits.

One analyst spoke about this in a recent tweet:

“Couldn’t really hold the $10,000 level (or it’s dipping beneath). The second scenario would be a closing of the CME gap, after which closing of the upper CME gap is next. $9,600-9,800 could be bottom level for now,” he said.

Image Courtesy of Crypto Michael. Chart via TradingView.

How Bitcoin trends in the coming few hours should reveal whether or not its bull trend is over for the time being.

Featured image from Unsplash.
Charts from TradingView.

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