The crypto markets have dipped as they head into the weekend after incurring a significant amount of upwards pressure throughout this week. The latest drop has put Bitcoin (BTC) back into the $5,600 region, signaling that the cryptocurrency’s bulls don’t have enough buying pressure to propel the crypto above $5,800.
Now, analysts believe that the crypto markets may continue dipping lower before they hit a price level at which they can continue surging higher.
Bitcoin Drops Into $5,600 Region
At the time of writing, Bitcoin is trading down over 2% at its current price of $5,675, down from its daily highs of nearly $5,900 which were set yesterday.
Prior to today’s dip, analysts were closely watching the $6,000 level to see if the crypto would be able to break into this price region, with some analysts claiming that a decisive move into the $6,000 region would mark the start of the next bull market.
Big Chonis, a popular crypto analyst on Twitter, shared his thoughts on Bitcoin’s current price action in a recent tweet, explaining that BTC’s previous daily resistance is now acting as support, which may be a bullish sign.
“$BTC – Don’t get too bearish just yet, as previous daily resistance is being tested as #bitcoin support… a break of the $5,300 area would be a bit more worrisome that a larger correction is taking place,” he explained.
$BTC – Don’t get too bearish just yet, as previous daily resistance is being tested as #bitcoin support… a break of the $5,300 area would be a bit more worrisome that a larger correction is taking place… pic.twitter.com/r1MbAWQ5ke
— Chonis Trading-⚔️ (@BigChonis) May 4, 2019
BTC May Dip Lower Before Breaking Above $6,000
Although it is clear that Bitcoin isn’t quite ready to move into the $6,000 region, today’s dip may not be low enough for the crypto to garner any significant buying pressure that allows it to continue surging higher.
Peter Brandt, a celebrated analyst who covers a variety of assets and markets, spoke about Bitcoin in a recent tweet, saying that its recent highs may be a top that leads it to fall towards lower before it incurs enough buying pressure to propel it towards $6,500.
“Just an opinion — there is a chance $BTC is topping here, having met its price target at key resistance. A correction could occur before another move toward 6500, then a more significant correction,” Brandt explained.
Just an opinion — there is a chance $BTC is topping here, having met its price target at key resistance. A correction could occur before another move toward 6500, then a more significant correction. pic.twitter.com/woetnihqB5
— Peter Brandt (@PeterLBrandt) May 4, 2019
As the weekend continues on and traders gain a better understanding of how secure Bitcoin’s current position within the mid-$5,000 region is, it will likely become clearer as to whether or not a move to above $6,000 is in the cards in the near-future.
Featured image from Shutterstock.