After briefly dipping into the $7,000 region yesterday, Bitcoin (BTC) has once again been able to maintain this region as a strong level of support, as it has now climbed back to $8,100 during a strong move that followed its drop to lows of just under $7,900.
Analysts are now noting that bears are still in control of Bitcoin, which could point to the possibility that it will incur significantly further downwards pressure in the near-term before it is able to find enough support to spark the next noteworthy uptrend.
Bitcoin Climbs Back Above $8,000 as Bulls Fight Back
At the time of writing, Bitcoin is trading up just under 2% at its current price of $8,150, which marks a slight climb from its daily lows of under $7,900 which were set yesterday after BTC lost its foothold above its previous key support level at $8,200.
Bitcoin has been caught in a tight trading range between roughly $7,800 and $8,300 for the past several days, and its latest price action appears to further confirm the near-term strength of both the upper and lower boundaries of this range.
It is important to note that BTC’s bounce in the upper-$7,000 region may prove to be a technically positive thing for the crypto in the near-term, as analysts are noting that it is currently forming what appears to be a reversal formation.
“$BTC – Trying to build momentum above $8K on a reversal candle combo TD 9 on the 12hr #bitcoin chart,” Big Chonis, a popular cryptocurrency analyst on Twitter, explained in a recent tweet.
$BTC – Trying to build momentum above $8K on a reversal candle combo TD 9 on the 12hr #bitcoin chart… pic.twitter.com/lJ1RJDqbLZ
— BIG Chonis (@BigChonis) October 7, 2019
Will BTC’s Bulls Defend Against Further Downside in the Near-Term?
Although Bitcoin is currently forming a bullish reversal formation on its 12-hour candle chart, other analysts still believe that bears will continue to have an edge over bulls in the near-term, which could mean that the crypto is gearing up for a movement down towards the mid-$7,000 region.
Josh Rager, another popular crypto analyst on Twitter, spoke about this in a recent tweet, explaining that the crypto is still caught in a bearish descending triangle despite its upwards movement overnight.
“$BTC Update: After the close below sub $8k yesterday, Bitcoin has pushed back up over $8k but price rejected at resistance As you can see on the 4-hour chart, Bitcoin is currently in a descending channel. I’m currently short and waiting for the price to hit $7600s,” he noted.
https://twitter.com/josh_rager/status/1181176932530114560?s=21
The coming days will likely prove critical for determining which direction Bitcoin will trend throughout the rest of 2019, as a failure to garner any notable upwards momentum could mean that lower lows are imminent.
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