Analyst: Bitcoin May First Tank to $9700 Before Rallying to Fresh Highs

• Bitcoin bulls and bears are currently deadlocked as the cryptocurrency trades around $11,000
• This price region has proven to be heavy resistance for BTC in the past, and whether or not it can be surmounted in the coming day or so should provide insight into the strength of BTC’s bulls
• A rejection here could cause it to see some notable downside in the near-term, sending shockwaves throughout the entire cryptocurrency market
• One analyst is noting that he does believe there’s a strong chance Bitcoin plunges lower before being able to find enough support to rally higher
• He is selling his sights on a move to the upper-$9,000 region

Bitcoin is quite stable below $11,000 at the moment, with bulls tapping this level on multiple occasions throughout the past day. So far, buyers have been unable to break above the selling pressure that exists around this price region.

That being said, whether or not they are able to surmount this level prior to the weekly close should provide insights into the cryptocurrency’s mid-term outlook.

Another firm rejection here would indicate that buyers are losing their control of the market and that significantly further downside may be imminent.

One trader is specifically setting his sights on a decline towards $9,700 in the near-term, noting that this is a bedrock support level that he expects to continue holding strong in the near-term.

Bitcoin Struggles to Break Above $11,000 

At the time of writing, Bitcoin is trading down marginally at its current price of $10,940.

This is around the price at which it has been trading throughout the past couple of days, with each jump into the $11,000 region being met with inflows of selling pressure.

How BTC continues reacting to this region will illuminate bulls’ present strength, as a failure to climb above $11,000 for an extended period of time could result in it seeing major downside.

Analyst: $9,700 is a Crucial Support Level to Watch in the Near-Term 

While speaking about Bitcoin’s near-term outlook, one analyst explained that $9,700 is the price level he is closely watching, as a continued bout of trading above here could bode well for bulls.

He also notes that a visit to this level could create a sustained uptrend that allows BTC to surmount $11,000.

“The 11.1k [resistance] matters, but this is just ltf. If $9,700 were to break then yes, it’ll get interesting, but I don’t suspect bitcoin to tank at the moment. Just a choppy month across every market.”

Image Courtesy of AMD Trades. Chart via TradingView.

For now, it seems Bitcoin is rejecting at $11,000 once again, but this could change quickly if bulls step up and shatter this crucial resistance.

Featured image from Unsplash.
Charts from TradingView.

Originally from Bitcoinist.com https://ift.tt/3kuEQYr