Bitcoin has been showing tremendous signs of strength as it has been moving towards the mid-$ 9,000 region over the past few days.
It is important to note that the cryptocurrency is now pushing up against heavy resistance, although this surface-level movement may look like a bull. A rejection here may eventually result in massive losses in the coming days and weeks.
This potentially near future decline can erase almost all of the gains that have arisen as a result of the recent rise.
An analyst believes that if buyers cannot support crypto above $ 9,100, this could result in a full-fledged bearish trend.
Bitcoin climbs to $ 9,500 as Upper Momentum Mounts
At the time of writing, Bitcoin is trading slightly above 3% at the current price of $ 9,460. This marks a significant increase from the $ 8,800 low levels of the cryptocurrency set earlier this week.
BTC is trying to gain a significant momentum after the last rejection series of $ 10,000. However, today's climb may allow it to look back at these high levels.
In the near term, analysts are now cautious about excessive rise in Bitcoin, as it is pushing against a heavy resistance level that may eventually see some major losses.
This resistance appears to be around $ 9,500, and another rejection may be sufficient here for a full retreat.
A popular nickname trader spoke about it a tweetHe explained to his followers that there were a few factors that showed that crypto is basically weak.
Cryptocurrency is currently trading at high levels, below an important trendline and counteracting heavy resistance as a reason for being against the truth.
“BTC – Still stays flat. Interests: * 94 – 95s * Range highs * Trend line bottom side * Signs of any weakness and inability to catch 91 – may be short later, ”he explained, pointing to the $ 8,300 target in the chart below.
BTC Rapid Approaches Critical Monthly Close
Another analyst recently explained Bitcoin's rapid approach to an important monthly closure that can have a heavy impact on where it is trending in the summer.
He added that Bitcoin has not closed above $ 9,360 in about 12 months, and previous rejections at this level have catalyzed major setbacks.
“People who mentioned the importance of this BTC level, so I thought I'd give you a monthly opinion. We didn't have a one-month closure above 9360 in about 12 months. Rejections at this level led to $ 6,000 and eventually $ 3,000. 4 hours bounces around this level. ”
Featured image from Shutterstock.