Bitcoin and the aggregated crypto markets have been caught in a firm bout of sideways trading for the past couple of weeks, with BTC trading firmly within a long-established trading range between $9,000 and $9,500.
Analysts are now noting that Bitcoin has been holding above a key technical support level, but a break below this level could lead the cryptocurrency to free fall until it finds support around the mid-$8,000 region.
Bitcoin Caught in Tight Trading Range
At the time of writing, Bitcoin is trading down just over 1% at its current price of $9,250, which marks a notable drop from its daily highs of $9,400 that were set yesterday as bulls attempted to push the cryptocurrency to the upper boundary of its current trading range.
Because bulls have been unable to propel Bitcoin towards or above $9,500, bears may currently have the upper-hand as they begin pushing BTC back down towards the lower-$9,000 region.
It is important to note that where Bitcoin trends in the near-term will likely be primarily guided by which range boundary is decisively broken above/below first.
Mr. Anderson, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that the next price discovery phase will kick off when the crypto moves above the red lines seen on the below chart.
“$BTC’s next move simplified. The msg on my last several live market update videos has been the same since Oct 28th. The first H12 close outside of the 200ema or the 200sma (red lines on this chart) will likely decide which direction the next price discovery phase will take place,” he explained.
$BTC's next move simplified
The msg on my last several live market update videos has been the same since Oct 28th
The first H12 close outside of the 200ema or the 200sma (red lines on this chart) will likely decide which direction the next price discovery phase will take place pic.twitter.com/ok4p5kqTaD
— Mr. Anderson (@TrueCrypto28) November 7, 2019
Drop Below Current Support Could Lead BTC to Plummet
Big Chonis, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin has been holding above a key support level for the past several days, but that it doesn’t have another well-defined technical support until the $8,000 region.
“$BTC – Finally hits the MA50 on the #bitcoin 6hr chart… still a big separation between here and the MA100/200 cross,” he said while pointing to the chart seen below.
— Big Chonis Trading? (@BigChonis) November 7, 2019
The coming few days and weeks will likely elucidate where Bitcoin is heading next, as how reacts to the current range it is trading within may set the tone for how it trends for the months to come.
Featured image from Shutterstock.