After an extended period of trading sideways around $8,500, Bitcoin’s bulls have begun to fight back, pushing the crypto towards $8,700. In spite of this upwards movement today, it is important to note that BTC has not yet been able to climb back above its previous support level around $8,800.
Analysts are now noting that they believe Bitcoin is close to forming a long-term bottom that will help propel its price higher in the near-term, in spite of the bearish conditions surrounding its trading volume.
Bitcoin Climbs Towards $8,700 as Bulls Push Back Against Bears
At the time of writing, Bitcoin is trading up over 1% at its current price of $8,650, which marks a decent climb from its recent lows of $8,300 that were set at the bottom of the drop that BTC incurred earlier this week.
Prior to visiting these lows earlier this week, Bitcoin had been finding significant support between $8,700 and $8,800, so it is highly probable that this level will now act as resistance as bulls attempt to push the cryptocurrency back above this price region.
It is important to note that Bitcoin’s recent price action has come concurrently with a major decline in trading volume, which may be a bearish sign.
Cantering Clark, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, deeming this low volume as “ugly.”
“Ugly… Look at that volume on Bitmex. 784 Million. The last time 24 hour volume was this low was March 30th. Go ahead, look at that date on the chart. Realized and ATM Implied Volatility all at lows as well,” he explained.
Ugly.. Look at that volume on Bitmex. 784 Million.
The last time 24 hour volume was this low was March 30th.
Go ahead, look at that date on the chart.
Realized and ATM Implied Volatility all at lows as well. $BTC pic.twitter.com/fvKJ64mCZ3
— Cantering Clark (@CanteringClark) November 17, 2019
Will Lower-$8,000 Region Mark a Long-Term Bottom for BTC?
In spite of the bearish trading volume that BTC is currently facing, it is also important to note that analysts still remain optimistic that the crypto will soon see further bullishness.
Nik Patel, another popular cryptocurrency analyst on Twitter, explained in a tweet that he believes Bitcoin could incur one more leg down towards $8,000 in the near-term, but also that he expects this region to mark a long-term bottom for BTC.
“I think we’re not far off the bottom for this leg in $BTC. Discussed $8300 as a likely area for price to find support in the Market Outlook in late October… could drop to $8060 but I doubt any further. Thinking we get higher-timeframe range chop until year-end though,” he explained.
I think we're not far off the bottom for this leg in $BTC.
Discussed $8300 as a likely area for price to find support in the Market Outlook in late October… could drop to $8060 but I doubt any further. Thinking we get higher-timeframe range chop until year-end though.
— Nik Patel (@cointradernik) November 17, 2019
How Bitcoin continues to react to the lower-$8,000 region will provide invaluable insight into whether or not the crypto will end 2019 on a bearish note, or if bulls will be able to propel its price higher in the near-term.
Featured image from Shutterstock.
