- Bitcoin and the entire crypto market saw a wild day yesterday, with strong bids sending most major crypto asset’s flying higher
- Some of these gains were erased today, with bulls losing their edge over the market as bears try to regain control
- The recent downtrend has been accelerating rather quickly, but bulls do seem to be building some support in the lower-$36,000 region
- And dip below here could be a grim sign for the entire market’s near-term outlook
- One trader said in a recent tweet that this rejection wasn’t too surprising, as BTC rejected at the top of a long-held trading range
- It has yet to break out of this range firmly but could soon do so if bears are unable to extend the ongoing downwards momentum throughout the rest of the day
Bitcoin has seen some mixed price action as of late, with bulls aggressively budding it higher yesterday before an influx of selling pressure today caused it to erase a large portion of yesterday’s gains.
This price action has done little to provide investors with insights into the mid-term trend, as BTC’s latest rejection came about at the top of a long-held trading range.
Assuming this range holds strong, it could indicate that further downside is imminent in the near-term.
Bitcoin Erases a Piece of Yesterday’s Gains as Bears Take Hold
At the time of writing, Bitcoin is trading down just under 3% at its current price of $36,600, which is around where it has been trading throughout the morning hours.
Bears did push it as low as $36,000, but some decent buy-side support allowed for it to see a rebound.
It remains unclear how strong this resistance will be in the mid-term or whether it will prove to be a local high.
BTC Remains Range-Bound as Selling Pressure Mounts
One analyst explained in a recent tweet that Bitcoin is still trading within a large trading range and may not break out until bulls can gain greater control over the market.
“BTC: Still range bound unless we make a clean break above January high,” he said while pointing to the below chart.
Image Courtesy of TraderSZ. Source: BTCUSD on TradingView.
The coming few days should shine a light on Bitcoin’s outlook and whether or not the selling pressure it currently faces will be enough to thwart the newfound uptrend.
Featured image from Unsplash. Charts from TradingView.