Bitcoin Analysts Eye Move to $7,000 Region as Support Begins Dissolving

Friday 22 May 2020, 9:22 AM AEST - 3 months ago

  • Bitcoin has faced some mounting downwards pressure today that has led it to its key support within the lower-$9,000 region
  • This downtrend comes after a series of strong rejections at $10,000, and was triggered by news of a 2009 BTC wallet moving crypto around
  • This decline has led the crypto to invalidate a previously bullish technical formation, and analysts are now expecting it to see further downside in the days ahead

Bitcoin is rapidly approaching its key support that has been established between $9,000 and $9,200 over the past couple of weeks.

The cryptocurrencys ongoing decline comes after bulls tried and failed on multiple occasions to break the heavy selling pressure that exists just below $10,000.

This decline has led BTC to see a technical degradation that is now opening the gates for it to see further downside in the days and weeks ahead. Some analysts are even targeting a move down towards $7,900.

A previously bullish technical formation that the crypto was caught within has also been invalidated.

Bitcoin Declines Towards $9,000 as Weakness Mounts

At the time of writing, Bitcoin is trading down just under 6% at its current price of $9,150. This marks a notable decline from recent highs of over $9,800 that were set yesterday morning.

Once news broke of a previously dormant Satoshi-era wallet from 2009 moving Bitcoin, investors grew fearful that an early adopter was preparing to offload a significant amount of their crypto holdings.

This sparked a slight decline that led the crypto down into the mid-$9,000 region.

Bitcoins ongoing regression was triggered by this news, but it has likely been perpetuated by the multiple swift rejections that it has seen at $10,000 throughout the past several weeks.

This weakness has caused Bitcoin to invalidate a previously large ascending triangle pattern that some analysts had previously expected to give BTC a much-needed boost.

I dont like this extra low tf rollover we just got. I will let this play out to a lower low under ~$9120 before officially declaring [the triangle] dead, but we dont really have the solid uptrend Id like for an ascending triangle any longer at this point, one analyst noted.

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