Bitcoin sees increasing weakness due to its recent downtrend. This weakness is now in danger of a break below the critical support that has led its uptrend throughout the past few weeks.
If buyers fail to hold BTC above $ 11,300 for the next few days, it could return to the next major support level around $ 10,000 before any meaningful support can be found.
Bitcoin needs to hold this critical support level
At the time of writing, Bitcoin is trading slightly down at its current price of $ 11,406. This level is just above the support level, where buyers are trying to absorb the heavy selling pressure it is facing around this price level.
It’s important to note that this horizontal support also coincides with the cryptocurrency’s 200-day EMA – the significant technical level had helped to guide BTC’s uptrend.
Analyst “Teddy” has noted that bulls are in a good position as long as Bitcoin holds above this level.
“Price still hanging on the 200ema. As long as the price is above it, bulls can relax, and they are still holding the trend by the balls…”
Price still hanging on the 200ema.
As long as price is above it, bulls can relax and they are still holding the trend by the balls.$BTC pic.twitter.com/3RzxeLEIbZ
— Teddy (@TeddyCleps) August 26, 2020
If this critical support is lost in the coming days as BTC faces increased selling pressure,
Bitcoin Jack analyst notes that a move towards $ 9,500 could be followed.
“The bull & bear scenario for $BTC. Neither has confirmed yet for me – not taking any extra exposure to either side for now, neither am I reducing any exposure. Sitting on my hands… What happens next is crucial for my bias…”
What happens next is crucial for my bias pic.twitter.com/plKyxESarF
— //Litecoin ?ack ? (@BTC_JackSparrow) August 26, 2020
The next few hours and days will be crucial to understanding the validity of Bitcoin’s mid-term uptrend.
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