After surging from its recent lows of $7,800, Bitcoin has been unable to extend its upwards momentum and has continued trading sideways within the lower-$8,000 region. This bout of consolidation has made it increasingly unclear as to which direction BTC will move next, although its next major movement should provide significant insight into this.
One analyst is now noting that Bitcoin may continue dropping until it reaches the $5,000 region, which is where it currently has enough support to bolster its near-term price action and help it surge significantly higher in the near-term.
Bitcoin Stabilizes Around $8,400, But Momentum Falters
At the time of writing, Bitcoin is trading up marginally at its current price of $8,400, which is where it has found stability in the time since it plummeted following its attempt to surge towards $9,000 that occurred a couple of days ago.
Bitcoin’s inability to continue surging after it visited its recent lows of $7,800 points to an underlying weakness amongst the cryptocurrency’s bulls, and may signal that it will incur further losses in the near-term until it finds a region of support that has enough buying pressure to spark the next long-term uptrend.
It is important to note that Bitcoin did respond bullishly to an attempt by bears to push the crypto’s price lower last night, which caused it to wick as low as $8,200 before climbing back towards its current prices.
Big Cheds, a popular crypto analyst on Twitter, spoke about this movement as it happened yesterday, concisely noting that the drop was a reaction to the lack of buying pressure within a demand zone.
$BTC #Bitcoin gone pic.twitter.com/sw3G6zXYrn
— Big Cheds (@BigCheds) October 11, 2019
Analyst: BTC May Visit $5,000 Next
As for where Bitcoin could head in the near-term, Josh Olszewicz, a popular crypto analyst on Twitter, recent shared a very bullish assessment of the crypto’s recent price action, noting that it may continue plummeting until it finds noteworthy support within the $5,000 region.
“1D $BTC: 10k or 5k. – denied at 200EMA – still in multi-year bull PF – above yearly pivot now – above VPVR volume node now – will prob take a week for alligator to flip bull – fractal calling for short <7.7k – 5k is biggest recent support node aside from multi-month 6.5k vol node,” he explained while pointing to the below chart.
1D $BTC
10k or 5k
– denied at 200EMA
– still in multi-year bull PF
– above yearly pivot now
– above VPVR volume node now
– will prob take a week for alligator to flip bull
– fractal calling for short <7.7k
– 5k is biggest recent support node aside from multi-month 6.5k vol node pic.twitter.com/LX0NACF2Sr— Josh Olszewicz (@CarpeNoctom) October 11, 2019
While looking at Olszewicz’s above analysis, it becomes abundantly clear that Bitcoin is currently trading at a pivoting point that will determine which direction the aggregated crypto market head next.
Featured image from Shutterstock.
