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After making a strong attempt to break above $8,000 yesterday, Bitcoin (BTC) lost the momentum that it had been gaining over the past couple of days and has begun to descend back down towards the lower-$7,000 region.
The cryptocurrency’s inability to break above $8,000 has led analysts to conclude that BTC could be at risk of reversing its recent uptrend, meaning that significantly further losses could be imminent.
Bitcoin Loses Momentum as Bears Defend $8,000 Resistance
At the time of writing, Bitcoin is trading down just over 2% at its current price of $7,600, which marks a slight retrace from its daily highs of just under $8,000 that were set at the peak of the recent rally that was first sparked when BTC bounced from $6,500.
If Bitcoin fails to garner any upwards momentum in the near-term, it is highly probable that it will see further downside in the coming hours and days, as it may signal that $8,000 is an insurmountable resistance level that will suppress any potential bullishness.
CryptoBirb, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, telling his followers that BTC must break and hold above $7,960 in order for it to have a chance at moving up towards $7,960.
“$BTC must reclaim 7960 to swing 9.1k (note bullish divergence). Early signal is 3D close above MA100. Anything below is MTF~5.4k-oriented,” he noted while referencing the chart in the below tweet.
$btc must reclaim 7960 to swing 9.1k (note bullish divergence)
early signal is 3D close above MA100
anything below is MTF~5.4k-oriented
you are welcome pic.twitter.com/2nATQ8emDe— Adrian Zduńczyk, CMT (@crypto_birb) November 30, 2019
Will Further Downside Reverse the Recent Uptrend?
Assuming that Bitcoin faces further near-term downside, the recent uptrend experienced by the crypto in the time since it surged from lows of $6,500 may be in peril of being reversed.
Josh Rager, another popular cryptocurrency analyst on Twitter, mused this possibility in a tweet, telling his followers that BTC’s recent highs could mark a local top.
“$BTC could be reversing here after a short term uptrend. Remember, the overall trend has been down, though price can’t move straight down and this relief was needed short term. Price could have certainly hit local top here as we move closer to the weekly close,” he bearishly noted.
https://twitter.com/josh_rager/status/1200783507401977861?s=21
Although it does remain unclear as to whether or not this bearish possibility will play out in the coming hours and days, an inability for Bitcoin’s bulls to propel it back up towards $8,000 could mean that further downside is inbound.
Featured image from Shutterstock.
