Bitcoin (BTC) has continued inching lower following its recent bearish break below $9,000, which points to the possibility that bears are building strength as bulls fail to propel the crypto while it trades just a hair above its key near-term support level.
Analysts are now noting that Bitcoin may soon incur further losses as it nears the completion of a bearish EMA cross, which may mean that a movement to the lower-$8,000 region is imminent.
Bitcoin Sits Upon Key Support Level as Bears Build Strength
At the time of writing, Bitcoin is trading down marginally at its current price of $8,740, which marks a notable drop from its daily highs of $8,900 that were set overnight when bulls attempted to propel the crypto back to $9,000.
The swift rejection that came about following this overnight movement points to the fact that bears currently have an upper hand over bulls and may signal that further downside is imminent for BTC.
In the near-term, analysts anticipate this bearishness to lead BTC down to the mid-$8,000 region, with one analyst setting a near-term target at $8,400.
The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, telling her followers that any break below the support that Bitcoin currently has at $8,400 could send the crypto plummeting to $7,100.
“$BTC: Support test on wedge incoming. I have two possible supports I am looking at: 8400 – 8500 regions. If this support fails, and this wedge is invalidated, we will possibly go towards my 7.1k target sooner than later,” she said while pointing to the charts seen below.
Support test on wedge incoming
I have two possible supports I am looking at
8400 – 8500 regions
If this support fails, and this wedge is invalidated, we will possibly go towards my 7.1k target sooner than later pic.twitter.com/Boz0yTMbXJ
— The Cryptomist (@TheCryptomist) November 12, 2019
Will EMA Bear Cross Force BTC Lower?
One technical formation that Bitcoin is currently forming may support any potential bearishness that analysts are watching for in the near-term, as the ongoing bearish EMA cross that BTC is close to confirming could push the crypto below its near-term support levels.
Big Chonis, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, while also musing about the various other technical factors that he is closely watching in the near-term.
“$BTC – Daily closed with a lot of mixed signals. MA50 support – MA200 resistance, MA100 about to bear cross MA200. Lower cloud span resistance, still just above ‘golden zone.’ Looking for that possible 5th wave down confirmation. I expect increased volume this week in #bitcoin,” he said while referencing the chart below.
$BTC – Daily closed with a lot of mixed signals
MA50 support – MA200 resistance, MA100 about to bear cross MA200
Lower cloud span resistance, still just above ‘golden zone’
Looking for that possible 5th wave down confirmation
— Big Chonis⚔️Flux Trading Group🚀 (@BigChonis) November 12, 2019
How Bitcoin trades in the coming hours and days will have a significant impact on these technical formations and could provide analysts with significant insight into where the crypto is heading next.