Bank Sponsored

Analysts Believe Bitcoin May Continue Dipping Lower Before Surging to $6,500

Avatar Cole Petersen 1 year ago

The crypto markets have dipped as they head into the weekend after incurring a significant amount of upwards pressure throughout this week. The latest drop has put Bitcoin (BTC) back into the $5,600 region, signaling that the cryptocurrency’s bulls don’t have enough buying pressure to propel the crypto above $5,800.

Now, analysts believe that the crypto markets may continue dipping lower before they hit a price level at which they can continue surging higher.

Bitcoin Drops Into $5,600 Region

At the time of writing, Bitcoin is trading down over 2% at its current price of $5,675, down from its daily highs of nearly $5,900 which were set yesterday.

Prior to today’s dip, analysts were closely watching the $6,000 level to see if the crypto would be able to break into this price region, with some analysts claiming that a decisive move into the $6,000 region would mark the start of the next bull market.

Big Chonis, a popular crypto analyst on Twitter, shared his thoughts on Bitcoin’s current price action in a recent tweet, explaining that BTC’s previous daily resistance is now acting as support, which may be a bullish sign.

“$BTC – Don’t get too bearish just yet, as previous daily resistance is being tested as #bitcoin support… a break of the $5,300 area would be a bit more worrisome that a larger correction is taking place,” he explained.

BTC May Dip Lower Before Breaking Above $6,000

Although it is clear that Bitcoin isn’t quite ready to move into the $6,000 region, today’s dip may not be low enough for the crypto to garner any significant buying pressure that allows it to continue surging higher.

Peter Brandt, a celebrated analyst who covers a variety of assets and markets, spoke about Bitcoin in a recent tweet, saying that its recent highs may be a top that leads it to fall towards lower before it incurs enough buying pressure to propel it towards $6,500.

“Just an opinion — there is a chance $BTC is topping here, having met its price target at key resistance. A correction could occur before another move toward 6500, then a more significant correction,” Brandt explained.

As the weekend continues on and traders gain a better understanding of how secure Bitcoin’s current position within the mid-$5,000 region is, it will likely become clearer as to whether or not a move to above $6,000 is in the cards in the near-future.

Featured image from Shutterstock.
Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Tags: BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Invest In The Best Performing Fund Of 2020 - 45%+ Estimated APR

Tachyon Protocol (IPX)

IPX Staking starts! No Lock Up. Withdraw and cancel anytime. No tech skills needed. Earn unlimited rewards by selling traffic to over 400,000 global users on Tachyon VPN.