After another failed breakout attempt, Bitcoin is once again hovering just above its crucial $9,200 support
The entire crypto market is currently expressing some signs of weakness
This weakness may be rooted in BTC’s decline beneath what one analyst is describing as a crucial level
He notes that a daily close beneath $9,230 would make a compelling case that further downside is imminent
This comes as multiple technical indicators all point to an imminent surge in the cryptocurrency’s volatility
Bitcoin and the entire crypto market appear to be on somewhat shaky ground at the present moment.
After attempting to break out of its trading range between $9,000 and $9,300, Bitcoin faced yet another rejection at just below $9,400 that caused it to see some notable downside.
This rejection is a sign that its buyers are plagued by underlying weakness and may signal that they will be unable to catalyze any further momentum in the days, weeks, and months ahead.
One analyst is now noting that he is closely watching to see how Bitcoin responds to $9,230, as a daily close beneath this level could be the impetus for further downside.
Bitcoin Flashes Signs of Weakness as It Trades Beneath a Crucial Level
At the time of writing, Bitcoin is trading down marginally at its current price of $9,210. This is around where it has been trading for the past several hours.
Yesterday, the crypto’s bulls pushed it past its $9,300 resistance and sent it towards $9,400.
The selling pressure here proved to be insurmountable, however, and subsequently caused the digital asset’s price to plunge.
$9,200 does appear to be a relatively strong support level, but whether or not it can continue trading above here could depend on today’s daily close.
One analyst is noting that a close beneath the crypto’s June 29th high of $9,230 would do significant damage to its technical outlook.
“BTC: Monday 29th June high… A compelling daily close below it would be the first sign of weakness in this local range. Price being capped at this key support for the last 8 days or so.”
Image Courtesy of TraderXO. Chart via TradingView.
Analysts Expect BTC’s Volatility to Start Ramping Up
Other analysts are noting that Bitcoin’s extended bout of sideways trading is unlikely to last for too much longer.
One trader pointed to a compression of the crypto’s EMAs and MAs on its four-hour chart as one sign of a looming movement.
“BTC: Wow look at the compression on all the EMA’s/MA’s right now on the 4hr. Price is under all currently and range EQ. I’d have to believe that this compression should bring short term volatility in the very near future,” he explained.
Image Courtesy of Pentoshi. Chart via TradingView.
Whether this volatility favors buyers or sellers could depend on Bitcoin’s reaction to its $9,200 support.
Featured image from Shutterstock.
Charts from TradingView.