Bitcoin has once again found itself caught within a bout of consolidation as it ranges sideways above its key near-term support level at $8,700. Despite BTC’s recent sell-off that sent it reeling below $9,000, the cryptocurrency’s bulls have been able to defend this support level, which may be a bullish sign.
Although there are analysts that anticipate Bitcoin to see further downside in the near-term, it is imperative to note that one prominent analyst is now pointing to Bitcoin’s mining difficulty adjustment as a sign that another major bull run is imminent.
Bitcoin Trades Sideways as Analysts Anticipate Further Near-Term Downside
At the time of writing, Bitcoin is trading up marginally at its current price of $8,780, which is just a hair above its key near-term support level of $8,700 that has held strong over the past several days and weeks.
It does appear that BTC is currently forming a fresh trading range between $8,700 and $8,900, as its price has been caught within this range for the past couple of days. If this range continues holding strong, traders may be in for another extended period of sideways trading similar to that seen when the crypto was caught between $9,000 and $9,500.
In the short-term, analysts are feeling increasingly bearish on Bitcoin, with one analyst setting a target in the lower-$8,000 region as a level at which he anticipates the crypto to find meaningful long-term support.
Hsaka, a popular cryptocurrency analyst on Twitter, mused this possibility in a recent tweet, concisely saying:
“$BTC: Time to bring it home.”
Time to bring it home. pic.twitter.com/4ZqxDyeTfy
— Hsaka (@HsakaTrades) November 12, 2019
BTC Mining Difficulty Adjustment May Prove to be Bullish
Regardless of Hsaka’s bearish near-term assessment of Bitcoin, another more fundamental factor could point to an imminent bull movement for the cryptocurrency in the mid-term.
PlanB, another popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, pointing to a chart that shows that drops in BTC’s mining difficulty – like the one it recently incurred – are historically followed by large bull movements, which may mean that further bullishness is inbound.
“9 years of #bitcoin difficulty adjustment: like clockwork,” he explained while pointing to the chart seen below.
— PlanB 🔴 (@100trillionUSD) November 12, 2019
In the coming few hours and days, Bitcoin’s price may retrace further before it finds any long-term support, but the mid-term outlook is beginning to look strikingly bullish.
Featured image from Shutterstock.