Bitcoin is once again teetering on the brink of seeing some serious downside, as the cryptocurrency is struggling to hold above its key $9,900 support The benchmark crypto has yet to plunge beneath this level, but the chances of it being broken do appear to be growing by the hour Most investors are anticipating this to result in a move down towards its CME gap at $9,700, which has yet to be filled Filling this gap could lead many bears to flip bullish, thus boosting the crypto’s price higher That being said, one analyst is looking towards a variety of factors that suggest Bitcoin is building up pressure to make a massive movement

Bitcoin and the entire cryptocurrency market is currently experiencing some immense weakness, with BTC struggling to hold above its key support at $9,900 while most major altcoins post sizeable losses.

This comes after a long-held bout of sidewards trading between $10,000 and $10,300 and could simply mark an extension of this consolidation – if bulls can reclaim the five-figure price region.

One trader is pointing to a few factors that may indicate that a massive movement is on the horizon.

At the time of writing, Bitcoin is trading down over 4% at its current price of $9,970. This is around the price at which it has been trading throughout the past several days, with sellers being unable to shatter its $9,900 support.

That being said, the multiple tests that this level has undergone in recent times does indicate that a break below it may be imminent.

All eyes are now closely watching to see how BTC reacts to $10,000, as a break and hold above this level could be bullish, whereas a sustained bout of trading beneath it could result in it seeing further downside.

While speaking about Bitcoin’s current bout of trading above its key support, one analyst noted that Bitcoin’s sideways trading seems to suggest that a large movement is brewing.

He pointed to rising open interest on BitMEX as one factor supporting this notion.

“BTC grinding down in the 4 digits. Bitmex open interest significantly risen showing a lot of position taking. Not sure where we head next, it simply hints pressure is building and larger move likely, no directional bias. Bit scared if we don’t get a momentum break, react mode…”

How Bitcoin reacts to $10,000 should provide significant insight into its near-term trend.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

241 +