Bitcoin bounced off the resilient $8,830 level of support over the weekend as it flirted with the potential of a bearish breakdown in price.
The world’s largest cryptocurrency is currently trading at $9073.4, which is in the same range that it has been trading for the past two months.
BTC’s short-term bias seems to have flipped bearish following its extended downside correction from highs of $10,500 earlier in June, with some observers anticipating the flagship crypto to continue its decline.
That said, the BTC/USD pair is facing key hurdles near $9,200, where a high has formed near $9,190, and the price is currently trading in a tight range.
In the coming hours, if Bitcoin fails to clear the $9,200 resistance level, it could start a fresh decline, with the bearish sentiment likely to drive BTC prices towards lows of $8,600 in the near term.
Over $10M Worth of Asks at $9,500
According to BTC analyst Yodassk, traders on Binance have made a stand at $9,500-9,550, having placed orders of more than 1,300 BTC at that level according to order book data from the exchange’s BTC/USD equivalent market.
This means that there is $10M worth of sell orders at that region waiting to slow any rally, representing one of the biggest Bitcoin wallets Binance traders have collectively formed in a few days.
This order book data indicates that BTC may have a tough time rallying any further, with that same sentiment shared by On-chain analyst Cole Garner.
Cole recently observed details of Bitfinex’s order book, where the whale had begun to stack long orders between $8,600-8,900 on June 24th.
The Bitfinex order book delta has thus been skewed massively to the sell-side, which only compounded other bearish fundamentals that Cole identified, including an influx of withdrawals from miner wallets to exchanges and correlation with the S&P 500.
Hope Remains for a BTC Uptrend Despite the Gloomy Analysis
Despite the bearish outlook on BTC, optimistic news came from Wall Street, where market analyst Kevin Rooke confirmed that New York-based Grayscale Investment Trust had accumulated 9,879 BTC for their investment product in just one week.
That is more than the number of BTC produced by miners that week (7,081 BTC), pointing to a rising accumulation behavior by institutional investors.
Meanwhile, the recent announcement that PayPal and Venmo will begin supporting BTC transactions offers more than a retail demand boost for top crypto’s price, given PayPal’s 300 million users.
PayPal’s entry into the Bitcoin space also generates a strong positive signal to institutional investors that crypto-assets like BTC are valid and deserving of the investment.
Should more buyers enter the market on Bitcoin’s next projected dip towards $8,600, the move would help the king coin sustain its overall upside trend for the year.