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Bitcoin (BTC) and the aggregated crypto market has incurred a notable influx of selling pressure over the past 24-hours that has caused significant technical damage to many of the cryptocurrencies, with multiple prominent analysts claiming that this latest drop has opened the gates for further losses.
Although it is not unusual for analysts to flip bearish after a downwards movement, one prominent Bitcoin “permabull” who rarely offers even a hint of bearishness is now noting that the markets could soon see BTC trading at sub-$7,000, which he claims would be an ideal entry point.
Bitcoin Plummets Towards $7,000; Will Support Hold?
At the time of writing, Bitcoin is trading down just under 3% at its current price of $7,490 and has continued to find some support after reaching lows of $7,400.
It is important to note that Bitcoin’s price has dipped towards $7,300 on multiple occasions on popular margin trading exchanges like BitMEX, but each visit to this region has been met with some buying pressure that has bolstered its short-term price action.
It is highly likely that the lower-$7,000 area will continue to be a support region in the near-term, although it remains unclear as to just how weak BTC’s price currently is.
Thomas Lee, the head of Fundstrat Global Advisors, recently spoke to the Financial Review, explaining that he still ardently believes that the “crypto winter” ended in late-2018, and that the markets are still in a bull run.
“For the most part, our current framework is that ‘crypto winter’ ended in late-2018 and bitcoin is in a new bull market… But like prior bull markets, the rise in price is not continuous and we are in the midst of a consolidation, with potential downside risk near-term,” he explained.
Will BTC See Sub-$7,000 Prices in Near-Term?
Although Bitcoin does appear to have some support within the lower-$7,000 region and may still be in a macro bull market – per Lee’s statement – it does appear that BTC has been caught in the throes of a firm downtrend ever since it set its yearly highs at $13,800.
With that being said, Lee also noted that he believes that the markets could soon bear witness to sub-$7,000 BTC, with this being an ideal entry point as he expects the market conditions to improve in the next 10 weeks.
“Bottom line: We remain risk-off for bitcoin and crypto but see a higher probability of conditions improving within the next 10 weeks. Thus, bitcoin below $US7000 would be an attractive risk/reward,” he explained.
It’s unclear if Lee’s short-term bearishness is a grave sign for BTC, but how it responds to its recently established lows in the coming days and weeks will likely elucidate its mid-term trend.
Featured image from Shutterstock.
