BTC Annihilated Main Support Level During Recent Decline: Analysis

BTC annihilated the main support level over the past few days and was facing strong resistance over the past few days and weeks which suppressed its growth and sparked a few rejections so let’s read more in today’s Bitcoin news.

The selling pressure found within the $19,000 region was quite intense and could even continue suppressing the growth in the mid-term. One trader even thinks that any continued near-term weakness will cause more downside in the mid-term because it is now trading above a crucial technical support level that was held strong over the entire uptrend. Breaking below this could result in more losses in the near-term. With that being said, the overnight response to this level seems to be working in the bulls’ favor.

BTC was facing immense turbulence since its price hit the mid $19,000 region as many investors expected to rally after hitting these highs with the selling pressure proving to be too intense. This resulted in BTC seeing multiple consolidation phase with the multiple strong selloffs as long as the trend persisted in the mid-term. BTC will drift lower before hitting a new level with more support to spark a new uptrend.

One trader explained that the latest move lower means that BTC Annihilated the main support and left the bottom of the cloud as the last crucial support. At the time of writing, BTC is trading up under 1% with a price of $18,450 which marks a notable decline from the highs of $19,400. It also marks a slight rebound from its overnight lows at $17,640 that was tapped in the selloff period. The rebound from this level was extremely intense and bullish but has a long way to go before it is able to see more momentum in the mid-term.

One trader explained that BTC is now in a precarious position with the last crucial support level being in the short-term marks the bottom of the cloud that sits at $17,400:

 “Support was clearly annihilated. Price soon to test the support of cloud again, will be longing the rest with invalidation below.”

The fact that BTC posted a strong reaction to $17,700 which is a positive sign but more faltering momentum around the same price level could lead it lower and force it to touch the bottom of the cloud.