After incurring a noteworthy rally yesterday that sent Bitcoin’s price surging towards the mid-$8,000 region after a brief visit to $7,800, BTC’s upwards momentum has once again faltered, with the crypto once again nearing its previously established support level at $8,200.
Analysts are now noting that the price level that exists directly above BTC’s current price could be a major level of resistance, and it is imperative that the crypto breaks above it in order to post further gains in the near-term.
Bitcoin’s Upwards Momentum Falters as Bears Fight Back
At the time of writing, Bitcoin is trading up just over 1% at its current price of $8,240, but it is sitting off of its daily highs of over $8,300, which is where it found notable resistance that halted the upwards momentum it incurred after visiting $7,800 a couple of days ago.
Bitcoin has continued to trade within a tight trading range between roughly $7,800 and $8,400 for the past couple of weeks, and the dwindling trading volume has contributed to the bout of consolidation that the crypto has been facing ever since it lost its foothold within the lower-$10,000 region.
Analysts are now offering somewhat bearish assessments of Bitcoin’s near-term price action, which stems partially from its inability to move above its near-term resistance that exists around $8,300.
Big Cheds, a popular crypto analyst on Twitter, spoke about BTC in a recent tweet, explaining that its drop from its daily highs was sparked by a bearish divergence on its hourly chart, which may point to the possibility that it will soon revisit its range lows.
“$BTC #Bitcoin 1 hour – OBV bear divergence,” he said while pointing to the below chart.
$BTC #Bitcoin 1 hour – OBV bear divergence pic.twitter.com/CV0Ix9v4T6
— Big Cheds (@BigCheds) October 8, 2019
BTC May Drop Lower if Bulls Fail to Push it Above $8,380
Josh Rager, another popular crypto analyst, explained in a tweet that Bitcoin’s near-term resistance sits at roughly $8,380, and a break above this level could lead it straight to $8,500 – which is a resistance level that must be decisively broken above if bulls want to gain full control of BTC.
“$BTC – As you can see from the blue lines and volume profile Bitcoin price managed to break and close above the highest volume areas in this range. This will now typically act as support. $8,380s could act as resistance but price can run up to $8500s with a break above there,” he noted.
$BTC – As you can see from the blue lines and volume profile Bitcoin price managed to break and close above the highest volume areas in this range
This will now typically act as support
$8,380s could act as resistance but price can run up to $8500s with a break above there pic.twitter.com/06PaiqdjTa
— Josh Rager 📈 (@Josh_Rager) October 8, 2019
The coming hours and days will likely offer the markets significant insight into whether or not Bitcoin will be able to continue the uptrend it has been caught within throughout 2019, or if it will continue to cut deeper into its year-to-date gains.
Featured image from Shutterstock.
