Bitcoin (BTC) has continued slowly grinding lower as bears gain the upper hand over bulls, and sellers have now led the cryptocurrency down to a key support level that must be defended or else it will open the gates for significantly further losses in the near-term.<\/p>\n
Analysts are now noting that technical indicators may point to the possibility that Bitcoin is in the process of bottoming out, but BTC\u2019s inability to post any strong bounce at $8,000 may point to an underlying weakness amongst the crypto\u2019s buyers.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading down nearly 5% at its current price<\/a> of $8,160, which marks a notable drop from its daily highs of nearly $8,600 that were set yesterday morning.<\/p>\n Today\u2019s dip to lows of $8,000 marks an extension of the sell-off that first occurred when BTC fell below $9,000, which had previously proven to be a strong support level for the cryptocurrency.<\/p>\n BTC did post a slight bounce at $8,000 today, signaling that this is a near-term support level that could bolster the cryptocurrency\u2019s near-term price action.<\/p>\n One interesting factor that may play into Bitcoin\u2019s near-term price action is the fact that leveraged funding is currently positive, meaning that there is a premium cost to enter long positions, which makes short positions a better value proposition at the moment.<\/p>\n Big Chonis, a popular cryptocurrency analyst on Twitter, discussed this in a recent tweet, explaining that it is currently a better value to countertrade using short positions until the ongoing downtrend begins shifting.<\/p>\n \u201c$BTC – ever since the late October pump, Leveraged funding has been positive meaning there has been a premium cost to enter LONG positions even while #bitcoin continues to retrace, until this goes negative it\u2019s still a better value to countertrade short, until proven otherwise.<\/p><\/blockquote>\n $BTC<\/a> – ever since the late October pump, Leveraged funding has been positive meaning there has been a premium cost to enter LONG positions even while #bitcoin<\/a> continues to retrace, until this goes negative its still a better value to countertrade short, until proven otherwise \ud83e\udd14 pic.twitter.com\/VLL8P2ILcX<\/a><\/p>\n — BIG Chonis (@BigChonis) November 19, 2019<\/a><\/p><\/blockquote>\n\n