- Bitcoin’s inability to break above $10,500 speaks to some underlying weakness amongst the cryptocurrency’s bulls
- It also shows that the bears still have the edge over the benchmark crypto’s price action, which could mean that a break below its key support between $9,900 and $10,000 is imminent
- BTC is currently caught within a consolidation phase, being unable to find any strong momentum following the recent rejection
- Analysts are growing bearish on its near-term outlook, with one trader offering a short target of $9,600
- His bear-bias will only be invalidated if the crypto breaks above $10,500
Bitcoin and the entire crypto market are currently lacking some directionality. This comes as BTC enters a consolidation phase following the recent rejection at $10,500.
After plunging lower, BTC eventually found some strong support around $10,200, which appears to be the cryptocurrency’s new short-term support level.
If bulls are able to continue defending against further near-term downside, it is possible that this support level will allow the crypto to rally higher in the near-term.
One analyst, however, is now noting that he is flipping short on Bitcoin with a downside target of $9,600. His bias will only be invalidated if the crypto can post a clean break above $10,500.
Bitcoin Enters Consolidation Phase Alongside Aggregated Crypto Market
At the time of writing, Bitcoin is trading down marginally at its current price of $10,300. This is around the price at which the cryptocurrency has been trading throughout the past few days.
Overnight, bears pushed it as low as $10,200 on multiple occasions, but each time it found some strong buying pressure here that helped guide it higher.
Part of its current instability has come about due to turbulence within the stock market. Although the benchmark indices have been able to climb higher today, they are still showing some signs of underlying weakness.
Why One Analyst is Targeting $9,600 for BTC
His chart indicates that this trade setup will be invalidated if the cryptocurrency breaks above $10,500.
“Bitcoin – Doesn’t look like I’m going to get filled before another low, so I’ll go ahead and take this trade here.”
Image Courtesy of Calmly. Chart via TradingView.
How Bitcoin reacts to these key levels in the coming few days should offer significant insight into its mid-term outlook.
Featured image from Deposit Photos. Charts from TradingView.