It has been a crazy past few weeks for Bitcoin, with the cryptocurrency’s price incurring an explosive rally that sent it surging from lows of $7,300 to highs of $10,600 before this momentum faltered and BTC began a slow grind down to its current price levels.
One prominent analyst is now noting that Bitcoin’s inability to stabilize above $10,000 following this rally may bolster the bearish “echo bubble” narrative that many analysts have been entertaining over the past couple of months.
Bitcoin Finds Continued Support at $8,000
At the time of writing, Bitcoin is trading down over 2% at its current price of $8,190, which marks a slight climb from its daily lows of $8,000, which is where the crypto has been able to find continual support at over the past day.
Bitcoin has been slowly grinding lower over the past several days and weeks, finding multiple support levels before trading sideways and ultimately breaking down to set lower lows.
It remains unclear as to whether or not this bearish pattern will continue to persist in the near-term as BTC consolidates around $8,000, but one analyst does believe that the crypto will soon post a large upwards movement.
HornHairs, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that the demand for BTC around its current price range, as well as a few other factors, have led him to believe that this current price level will mark a mid-term bottom.
“$BTC: I’ve stuck to LTF scalps since the pump but am now looking to hop into a longer time frame swing trade here on the buy side. Bullish MS break on the weekly (higher high), price retracing back to the fib OTE, yearly pivot, weekly demand & daily bullish breaker,” he explained while referencing the chart seen below.
I've stuck to LTF scalps since the pump but am now looking to hop into a longer time frame swing trade here on the buy side.
Bullish MS break on the weekly (higher high), price retracing back to the fib OTE, yearly pivot, weekly demand & daily bullish breaker. pic.twitter.com/K00bmTvrNv
— HornHairs ? (@CryptoHornHairs) November 19, 2019
Will Technical Weakness Confirm Bearish BTC Echo Bubble Narrative?
Mark Dow, a popular economist and hedge fund manager, recently spoke about Bitcoin’s price action in a tweet, explaining that “truly strong” assets don’t immediately retrace after movements like the one seen in late-October, and that its swift retrace from its highs of over $10,000 could confirm the bearish echo bubble narrative.
“We’ll see if 200dma matters to #bitcoin. But truly strong assets don’t give back moves like the one up thru 10k, esp when they start from so far below ATHs. Thesis of echo bubble unwind, w occasional upside spasms & progressively weaker FOMO, just got a lot stronger,” he noted.
We'll see if 200dma matters to #bitcoin. But truly strong assets don't give back moves like the one up thru 10k, esp when they start from so far below ATHs
— Dow (@mark_dow) November 19, 2019
If BTC is unable to hold above its near-term support and fully retracts the gains that were incurred during the recent rally, it could confirm significant underlying weakness that opens the gates to even further losses.
Featured image from Shutterstock.