It has been a rocky past couple of weeks for Bitcoin and the aggregated crypto market. Despite some turbulence, BTC bulls have been able to guard against it seeing any significant near-term downside.
Late last week, the crypto started gaining some momentum that sent it to highs of $11,600, at which point it faced an influx of selling pressure that caused its price to decline to lows of $11,100.
Bulls were able to guard against any further downside and have since pushed the crypto up towards highs of $11,800 that were set earlier today.
Despite this overt strength, there are a few factors that have led one analyst to expect some near-term downside.
He specifically points to some intense resistance Bitcoin is pushing against, coupled with a massive liquidity region in the lower-$11,000 region.
This liquidity may need to be tapped by the benchmark cryptocurrency before it is able to see any significant momentum in the near-term.
Bitcoin Pushes Up Against Key Resistance as Analysts Flip Short
At the time of writing, Bitcoin is trading up marginally at its current price of $11,715.
This is around the price at which it has been trading throughout the past few hours, as buyers’ have faced faltering momentum following a rejection at $11,800.
Although this marks a strong recovery from its recent lows of $11,100 that were set last week, the cryptocurrency may still need to plunge back towards this price level before rallying higher.
To justify this notion, one analyst explained that he doesn’t believe Bitcoin is ready to surmount the heavy resistance that exists just above its current price region.
As such, he believes that a decline towards $11,100 is imminent.
“BTC short. Although I’m generally bullish on bitcoin, I’m taking this (if I get it) because: the setup is really good. I don’t think we blow past 12k just yet.”
Image Courtesy of Byzantine General. Chart via TradingView.
Liquidation Levels Around $11,000 Support Notion That BTC May Visit This Level
The same analyst also offered further support for the short-term bear case he presented above.
In addition to Bitcoin currently pushing up against heavy resistance, the lower-$11,000 region is also flush with liquidation levels for leveraged positions.
“This is also part of my reasoning. The dots are liquidation levels. I highlighted relevant clusters,” he explained.
Image Courtesy of Byzantine General. Chart via TradingView.
If liquidated, these leveraged long positions could provide fuel for a significant move higher in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.
