·

Bitcoin bulls defend against massive selling pressure; how long will they sustain?

Bitcoin bulls defend against massive selling pressure; how long will they sustain?

Bitcoin’s recent sell-off was further perpetuated by bears last night when they garnered enough strength to push BTC back down to its key short-term support level that currently exists at $8,500.

The cryptocurrency’s bulls have been able to defend this level over the past 24-hours and have begun to gain some upwards momentum as they attempt to push BTC back into the $8,700 region.

It is important to note that the selling pressure behind this recent movement has been quite intense, signaling to one prominent analyst that Bitcoin is bound to see a further near-term selloff that leads it as low as $8,300.

Bitcoin Begins Inching Higher Following an Overnight Dip 

At the time of writing, Bitcoin is trading up nominally at its current price of $8,680, which marks a notable recovery from its daily lows of $8,500 that were set just a few hours ago.

$8,500 is also the price at which Bitcoin found some notable support at following yesterday’s rejection at highs of $9,200, which further supports the notion that this is the cryptocurrency’s key near-term support level that bulls need to defend.

In spite of the swift rejection that was faced at its intra-rally highs of $9,200 this past Saturday, bears were only able to erase roughly five days of gains, and the crypto is still trading up from its weekly lows of $8,100.

In the time following its drop to its current price levels, bulls have made two futile attempts to push BTC towards $8,750, signaling that there is some slight resistance at this price point.

Selling Pressure Begins Ramping Up, Signaling a Break Below $8,500 Could Be Imminent

One factor that buyers should consider in the near-term is the fact that the selling pressure driving BTC’s downswing from $9,200 has been intense, and it could only be a matter of times before bulls lose their footing.

Cantering Clark, a popular cryptocurrency analyst on Twitter, explained in a tweet that he believes a dip towards $8,300 could be imminent due to the selling pressure behind this movement.

“Pretty heavy selling at the most recent push compared to even the initial heavy dump. I don’t think we get the immediate breakdown some are expecting. I can see floating up to Saturdays low before making a move lower to 8300,” he noted while pointing to the below chart.

Bitcoin BTC
Image Courtesy of Cantering Clark

Despite the potential bearishness of a movement to $8,300, it doesn’t appear that Clark believes there will be any type of violent retrace as some investors anticipate.

Bitcoin | BTC

Updated: Jan 21 at 11:10 am UTC
$8,659.15
0.08%

Bitcoin, currently ranked #1 by market cap, is up 0.08% over the past 24 hours. BTC has a market cap of $157.36B with a 24 hour volume of $28.81B.

Chart by CryptoCompare

Bitcoin is up 0.08% over the past 24 hours.

Posted In: , Analysis, Price Watch
Invest with AMFEIX

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Cole Petersen
Author

Cole Petersen

Journalist @ CryptoSlate

Cole is a freelance journalist and university student studying philosophy. He focuses primarily on covering cryptocurrency and blockchain-related news. He owns a non-life-changing sum of Bitcoin and enjoys day trading.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.