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Despite losing the majority of its upwards momentum over the past week, Bitcoin has been able to continue climbing higher and is now approaching the $5,300 level. BTC’s ability to continue climbing higher despite the lack of major buying volume has been technically positive, but traders are still laying out potential bear scenarios that could lead Bitcoin back down towards $4,000.
One prominent cryptocurrency analyst recently explained that he expects Bitcoin to get caught in a sideways trading range for the weeks to come, which may be disappointing to traders who are anxiously awaiting a big price swing.
Bitcoin (BTC) Tepidly Climbs Towards $5,300
At the time of writing, Bitcoin is trading up less than 1% at its current price of $5,275 and is up slightly from daily lows of $5,230. BTC is currently nearing its highest price level over the past seven days and has firmly established $5,000 as a strong level of support.
It is important to note that the cryptocurrency is currently just a hair below a key resistance level at $5,400 that has held strong ever since BTC first surged earlier this month. On April 10th, Bitcoin incurred a sudden influx of buying pressure that allowed it to surge to just above the aforementioned resistance level before facing strong selling pressure that pushed it to lows of $5,000.
This price action appears to have led to the creation of a fresh trading range between roughly $5,000 and $5,400, which may continue to hold strong for the foreseeable future.
Josh Rager, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, explaining that he expects BTC to stay caught in a relatively tight trading range for “weeks to come.”
“The longer $BTC ranges between $5,000 to $5,200, the stronger support it becomes after the next push up. Though this equally becomes a stronger resistance if a breakdown occurs. IMO, Bitcoin likely stays in the price range of this chart for weeks to come,” he explained.
https://twitter.com/josh_rager/status/1118728589237784576
This bout of sideways trading may ultimately prove to be overwhelmingly positive for individual cryptocurrencies, as many have already been able to surge despite BTC’s current lull.
Analyst: Bear Scenario Could Bring Bitcoin Down Towards $4,000
Although Bitcoin may presently look strong, if the crypto’s bears are able to push it below $5,000, it may continue dropping until it reached the low-$4,000 region.
Bagsy, another popular cryptocurrency trader on Twitter, pointed towards a Wyckoff Distribution pattern to illustrate the possible bear scenario for Bitcoin, noting that a drop below $5,000 could bring the cryptocurrency back down towards $4,000 – erasing virtually all the gains it has incurred over the past few weeks.
“$BTC Wyckoff Distribution: Warning, the following image contains graphic content. This is something I spotted, doesn’t mean it’s going to happen for those getting nervous, but it was worth pointing out,” he explained.
$BTC Wyckoff Distribution:
Warning, the following image contains graphic content. This is something I spotted, doesn't mean it's going to happen for those getting nervous, but it was worth pointing out. Big thanks to @walter_wyckoff for helping me iron out the structure. pic.twitter.com/XH8s98TlLS
— Bagsy (@Bagsy) April 17, 2019
Only time will tell as to whether or not BTC will get caught in a trading range for the next few weeks, but in the meanwhile, traders will likely turn to various altcoins in order to maximize their profitability.
Featured image from Shutterstock.
