Bitcoin 2 mins

Analyst: Bitcoin (BTC) Likely to Drop Towards $3,200 Unless it Finds Continued Bullish Momentum

Avatar Cole Petersen 5 months ago

Following the market’s recent volatility, Bitcoin has firmly established $3,800 as a level of support and has been able to continue holding steady above this price point. Analysts are now pointing out that BTC is currently holding above key moving average support levels, which could be a positive sign for the cryptocurrency’s price.

Despite this, one popular cryptocurrency analyst is now claiming that Bitcoin will likely target its firm support level in the low-$3,000 region in the near-future, unless the crypto is able to garner a significant amount of buying pressure.

Bitcoin (BTC) Holds Above Key Support Levels

At the time of writing, Bitcoin is trading down marginally at its current price of $3,855. This past weekend was particularly volatile for BTC, as it surged to highs of $4,200 on Saturday before plummeting to lows of $3,800 on Sunday.

Since this past Sunday, Bitcoin has been able to climb slightly from its lows of $3,800 and has established this price as a level of relative support. Importantly, however, Bitcoin was swiftly rejected after touching $4,200, which signals that this is a strong level of resistance for BTC.

It is currently unclear as to whether or not Bitcoin will begin forming a fresh trading range between $3,800 and $4,200.

Although the recent volatility appears to be negative, Chonis Trading, a popular cryptocurrency analyst on Twitter recently noted that BTC has been holding above the support line of an ascending parallel channel, which will be an important level to hold above if further gains are to be incurred in the near-future.

“$BTC – watching this parallel channel hold the price right on the support line once again on the 4hr #bitcoin chart…”

Furthermore, Chonis also noted that Bitcoin was able to climb back above its 100-day moving average after briefly dropping below it yesterday, which could be a positive sign for the cryptocurrency.

“$BTC – regained MA100 support on the #bitcoin daily chart… the back test of the MA50 needs to hold as it has been tested as resistance for some time before switching to support…”

Analyst Claims BTC May Soon Drop Towards $3,200

Although BTC’s ability to climb back above its 100-day moving average and to hold above the bottom of its parallel trading channel is positive, one analyst believes that Bitcoin may soon target its 2018 lows in the low-$3,200 region in the near-future if it is unable to gain a significant amount of buying pressure around its yearly open, which is set at roughly $3,700.

“Re-opened my short position, I think we might dump very soon. Target would be around 3200 unless we get a bullish SFP around blue box,” SalsaTekila – a popular crypto analyst on Twitter – explained in a recent tweet.

As Bitcoin’s trading activity continues to unfold as the week goes on, traders and analysts will likely gain greater insight into whether or not BTC will respect $3,800 to $4,200 as a new trading range.

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