Bitcoin has been hovering within the lower-$8,000 region for the past day, struggling to gain any significant momentum as the resistance between its current price and $8,400 continues to absorb the majority of BTC\u2019s buying pressure.<\/p>\n
Analysts are noting that Bitcoin may have to drop to a critical support level before it can muster up enough buying pressure to spark the next sustainable rally, which could lead the cryptocurrency to set fresh multi-month highs.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading up just over 1% at its current price<\/a> of $8,160, marking only a slight climb from its daily lows of just over $8,000.<\/p>\n $8,000 appears to be a key psychological price level for the cryptocurrency in the near-term, as it becomes support each time BTC is trading above it, and resistance when it is below.<\/p>\n It is important to note that Bitcoin<\/a> is currently stuck beneath a descending resistance line that was established earlier this week when it ran to highs of $8,400, and it is currently in the process of posting its fourth rejection at this line \u2013 assuming bulls aren\u2019t able to generate any significant buying pressure in the coming few hours.<\/p>\n UB, a popular crypto analyst on Twitter, mused the short-term impacts of this resistance in a recent tweet, explaining that he believes it means Bitcoin is in for an imminent test of $8,000.<\/p>\n \u201c$BTC – I’m short here half size until the Diagonal Resistance is broken. It’s hard to ignore the Lower Highs and overall weak follow through. Lose $7880 and I have my eyes on a sweep of the lows at $7700s. I may close early depending on the reaction at $8k,\u201d he explained.<\/p><\/blockquote>\n $BTC<\/a> – I'm short here half size until the Diagonal Resistance is broken. <\/p>\n It's hard to ignore the Lower Highs and overall weak follow through.<\/p>\n Lose $7880 and I have my eyes on a sweep of the lows at $7700s.<\/p>\n I may close early depending on the reaction at $8k. #Bitcoin<\/a> pic.twitter.com\/raoHJ5yaGh<\/a><\/p>\n — UB (@CryptoUB) January 11, 2020<\/a><\/p><\/blockquote>\n\n