Bitcoin saw some intense volatility earlier this morning that caused it to dip to lows of $9,400 before rebounding
It now appears that the cryptocurrency is once again caught within its long-held consolidation phase around $9,600
Analysts do remain largely bearish on the crypto however, as multiple are noting that BTC could now set fresh yearly lows as it flashes some signs of technical weakness
Bitcoin has seen mixed price action as of late. Its rally to highs of $10,400 earlier this week was overtly bullish, but its swift rejection here gave bears some ammo to push it lower in the near-term.
Despite the rejection at these highs being incredibly harsh, BTC buyers have remained strong as they continue holding the crypto within the $9,000 region.
Even today’s drop to $9,400 was quickly absorbed by bulls, causing it to be extremely fleeting.
Analysts are still bearish on the crypto’s mid and long-term outlooks, as a potential triple top and a large descending trendline both point to the possibility that lower lows are imminent.
Bitcoin Struggles to Gain Momentum as Selling Pressure Mounts
At the time of writing, Bitcoin is trading up under 1% at its current price of $9,660.
This marks a slight climb from daily lows of $9,400 that were set earlier this morning in a swift and fleeting selloff.
The decline to these lows suggested that BTC was about to break below the trading range it had formed within the mid-$9,000 region, but buyers were able to invalidate this possibility.
Analysts are now noting that Bitcoin could be well positioned to see further near-term downside.
In addition to lacking the buying pressure needed to gain a foothold within the $10,000 region, the latest rejection here also marks the third one it has seen at $10,500 in the time following its crash from its 2019 highs.
This has put in play a bearish triple-top formation that could guide the benchmark significantly lower in the near-term.
The below chart – offered by a prominent trader on Twitter – shows this pattern, while also highlighting macro support levels that sit mainly around the $7,000 region.
Image Courtesy of DonAlt
This Trader Thinks New 2020 Lows are Imminent
The triple-top pattern that is currently in play for Bitcoin isn’t the only macro-bearish factor that could cause it to see further losses.
Another analyst recently pointed to a descending trendline that has been formed over the past year as a reason why BTC could soon decline significantly further.
He even notes that it could lead the benchmark cryptocurrency to new lows in 2020.
“BTC 3D TF – Still eyeing new lows patiently in 2020,” he grimly stated.
Image Courtesy of Escobar
The only way for Bitcoin to invalidate these possibilities is for it to rally past the five-figure price region in a sustained uptrend.
Featured image from Shutterstock.