Bitcoin May Be Primed for a Bounce Despite Recent Selloff

Bitcoin (BTC) has been facing a steep sell-off over the past few days that has sent the cryptocurrency into the $10,000 region, which has led many analysts and investors alike to fear the possibility that Bitcoin revisits the four-figure price region in the near-future.

Now, analysts are explaining that Bitcoin may soon incur a decent sized relief rally despite its consistent losses over the past few days, which may allow BTC to find some stability at a slightly higher price region.

Bitcoin Plummets Towards Lower-$10,000 Region as Selling Pressure Ramps Up

At the time of writing, Bitcoin is trading down nearly 5% at its current price of $10,350 and is trading down significantly from its daily highs of nearly $11,000 that were set yesterday.

Importantly, this latest bout of downwards pressure marks an extension of the selling pressure that was incurred when BTC attempted to break above $12,000 on multiple occasions but faced a swift and violent rejection with each attempt.

These rejections have signaled that Bitcoins bulls do not currently have significant strength, despite their ability to push BTC from the lower-$3,000 region to highs of $13,800.

DonAlt, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that BTCs next major level of support exists at $9,800, and a break below this could spell trouble for the cryptos bulls.

$BTC daily update: Currently at support. Bulls need to hold 10600 or at the very least 9800 on a closing basis. If those fail I expect a range breakdown into a sustained move to the downside. Starting to get interesting here, he explained in a recent tweet.

$BTC daily update:

Currently at support.
Bulls need to hold 10600 or at the very least 9800 on a closing basis.
If those fail I expect a range breakdown into a sustained move to the downside.
Starting to get interesting here. pic.twitter.com/HTNAOsFIi4

Will BTC Soon See a Relief Rally?

Although the latest downwards pressure signals that sellers are currently in full control, it also means that the crypto is likely to soon experience a relief rally that could be the result of a short squeeze.

In order for this possibility to be confirmed however, Bitcoin may have to rise towards $10,800 in the near-term.

$BTC – Currently testing HTF Support. Good place for a bounce. The reaction at $10.8k – $11k on LTF will be important for my arguments. I believe this is a bear trap and late shorts are going to get squeezed as they often have. A Daily Close above 10.8k would be ideal, UB, another popular cryptocurrency analyst on Twitter, explained in a recent tweet.

$BTC – Currently testing HTF Support. Good place for a bounce.

The reaction at $10.8k – $11k on LTF will be important for my arguments.

I believe this is a bear trap and late shorts are going to get squeezed as they often have ...

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Tags: Bitcoin, Cryptocurrency, Rallying, Bulls