- The crypto market has been battered throughout the past few days, with sellers gaining a serious edge over buyers as they force most digital asset prices lower
- The strength of this selling pressure has been enough to cause some major altcoins like Ethereum to post monumental losses, with ETH plunging to lows of $330 while Bitcoin briefly broke below $10,000
- It is important to note that BTC’s latest breakdown was quickly absorbed by bulls, who were able to push it down to its key $9,900 support level
- One analyst is now noting that he believes a continued defense of this support level could be all that is needed for the asset to explode significantly higher
Bitcoin and the aggregated cryptocurrency market are currently facing some immense turbulence, with bears once again attempting to push BTC below $10,000 overnight.
This latest attempt – much like the past several ones – failed, with buyers posting an ardent defense of $9,900.
Analysts are now offering a bullish outlook on the market, noting that the liquidity within the upper-$9,000 region that has been tapped on multiple occasions may give way for BTC to see a massive spike up to $11,000.
Bitcoin Bounces at Key Support Following Intense Selloff
At the time of writing, Bitcoin is trading down just under 2% at its current price of $10,300. This is around where the cryptocurrency has been trading throughout the past several days.
The immense selling pressure it has been facing in recent weeks has catalyzed multiple dips below $10,000, but each one has been absorbed by heavy buying pressure.
This has made the upper-$9,000 region a crucial support level for the benchmark cryptocurrency.
If bulls can post a continued defense of this level, they may soon be able to propel BTC much higher and put some distance between its recent lows.
Analyst: This Key Liquidity Region May Propel BTC to $11,000
While speaking about the latest Bitcoin selloff, one analyst explained that the visit to its liquidity region at $9,900, followed by a support-resistance flip of $10,000, suggests that a bounce up towards $11,000 is imminent.
“Finally, liquidity at the lows taken. Reclaim of $10,000 would mean a S/R flip and a very probable chance we’ll look for liquidity above the range highs. That would suit a bounce towards $10,750-10,900 and majority of the markets bounce 25-40%.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Whether or not bulls can continue holding Bitcoin above $10,000 should offer some insight into its near-term outlook.
Featured image from Unsplash. Charts from TradingView.