Bitcoin (BTC) has surrendered the majority of the upwards momentum that it incurred earlier this week and is now sitting at a key support level that bulls must hold if they want to propel the crypto any further in the near-term.
It is important to note that the muted response to this support level may signal that significantly further losses are imminent, but other analysts are noting that BTC may once again target the $8,500 region in the near-term, with a break above this level potentially sparking another rally.
Bitcoin Nears Key Support Level as Bulls Falter
At the time of writing, Bitcoin is trading down over 1% at its current price of $8,270, which marks a notable retrace from its recent highs of roughly $8,500 that were set during the recent rally that was started when the crypto plummeted to lows of $7,800.
Bitcoin’s inability to extend its upwards momentum after this fleeting surge may point to an underlying weakness, and it may incur significantly further losses in the near-term if bulls are unable to support the cryptocurrency above its current price, which appears to have become an imperative support level.
Luke Martin, a popular cryptocurrency analyst on Twitter, spoke about this support level in a recent tweet, eluding to the possibility that a break below it will spark another downtrend.
“$BTC bulls want to see price staying above this 8200 support zone,” Martin explained.
$BTC bulls want to see price staying above this 8200 support zone. pic.twitter.com/CYjlFReSbL
— Luke Martin (@VentureCoinist) October 2, 2019
If BTC Holds Support, Could a Move to $9,000 Be Imminent?
Although it does appear that Bitcoin’s bulls are relatively weak at the moment as they defend its near-term support level, it is important to note that some analysts are pointing to the possibility that it will extend its uptrend if it is able to break above $8,500, which appears to be its near-term resistance level.
Harry, another popular crypto analyst on Twitter, spoke about this bullish possibility in a recent tweet, saying:
“$BTC – a very clear risk reward trade here for long’s looking to breakout $8,500 and attack $9-9.5k. Short pressure will be massive up there though.”
$BTC – a very clear risk reward trade here for long’s looking to breakout $8,500 and attack $9-9.5k. Short pressure will be massive up there though x pic.twitter.com/0arphVHB5Z
— Harry (@HaraldoXRP) October 2, 2019
The coming few hours and days will likely illuminate whether or not its support level at $8,200 will hold strong, with a break below it potentially leading BTC to cut even deeper into the gains it incurred throughout 2019.
Featured image from Shutterstock.