Last week, the price of Bitcoin (BTC) seemed poised for a big move up to $11,000. Instead, we saw a week of price action along with a small setback. Has Bitcoin peaked? Is there too much selling pressure around $10,000?
Let’s take a look at what’s happening with the largest cryptomoney by market capitalization, BTC.
3 Bitcoin price metrics have just converged, a bull run is what has always followed
Bitcoin is currently facing enormous resistance of between $9,500 and $10,005, according to the Binance order book shown in the Tensor Chart heat map above. Currently, these sales walls, most of which are represented by the yellow lines, show a total of 1,737 Bitcoin sales versus 1,351 purchases represented by the darker blue lines.
Although this data is only on the Binance Immediate Edge – Bitcoin Revolution – Bitcoin Profit – Bitcoin Billionaire – Bitcoin Evolution – Bitcoin Circuit – Bitcoin Era – Bitcoin Code – Bitcoin Trader – The News Spy, it gives us a good indication that there is currently not enough buying pressure to push the BTC/USD pair above $10,000. However, it is important to note that this data is constantly changing, and should only be relied upon as long as it is constantly referenced.
Bitcoin traders now have their sights set on the USD 6,000 – USD 7,000 after 4 failed attempts to break above USD 10,000
That said, this explains why Bitcoin’s price is stuck in the narrow range of $9,000 to $10,000, and until more buyers step in, it’s obvious this won’t change.
The weekly view is brilliant
On the weekly chart, Bitcoin is holding above the previous resistance. However, we still don’t see a full candlestick body near this line. At that point, it will be a clear signal for bearish traders to turn the tide, and although it currently looks good at the time of writing, if we close below $9,000 today, it will be a major setback for Bitcoin in the short term.
Bitcoin Price Drops to $8,900 and Fears of a New Downward Trend Increase
However, all eyes should be on the $9,000 level for the next week, as this is a break in a downstream channel. Every week, this support level drops around $100, so a prolonged failure to significantly break through the selling walls could cause Bitcoin support to slowly fall to $6,400 by the end of the year. That is, of course, until a new path emerges.