Bitcoin and the entire crypto markets have faced increased selling pressure today after experiencing a short bout of sideways trading as BTC struggled to decisively move into the $8,000 region.
Although today’s drop has slightly shifted the overall market sentiment for the worse, analysts are now noting that Bitcoin may be nearing a price at which it garners significant buying pressure that allows it to surge higher.
Bitcoin Nears $7,700 as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $7,750, down from 24-hour highs of $7,900.
Importantly, Bitcoin did bounce slightly today once it hit lows of $7,500, signaling that this price level is a region of support. Despite this, the bounce that resulted from the drop to $7,500 has been somewhat weak, which may signal that BTC will revisit this price level in the near-future.
Despite this, Josh Rager, a popular cryptocurrency trader on Twitter, explained that Bitcoin is still caught within a condensing formation, which likely signals that it will continue trading relatively sideways for the foreseeable future until it makes another massive movement.
“$BTC still in this condensing formation and held by horizontal supports. Not a lot has changed which shows that you don’t have to stare at charts all day – waiting for that next massive candle. I’m out for the night – have a great evening/day,” Rager explained.
$BTC still in this condensing formation and held by horizontal supports
Not a lot has changed which shows that you don’t have to stare at charts all day – waiting for that next massive candle
I’m out for the night – have a great evening/day pic.twitter.com/Y3i8DndpgB
— Josh Rager 📈 (@Josh_Rager) May 23, 2019
BTC Likely to Continue Climbing After Hitting Level of Immense Buying Pressure
Although it does appear that Bitcoin’s upwards momentum that has been incurred over the past several weeks is currently in jeopardy, one analyst believes that Bitcoin will continue surging upwards, but not until it reaches a price level that sparks a significant amount of buying.
Cantering Clark, another cryptocurrency analyst on Twitter, discussed where he sees Bitcoin heading next in a recent tweet to his nearly 8k followers, explaining that he generally expects it to climb higher, but is prepared to flip short on the crypto if it breaks below the red line he references on his chart.
“This is my current game plan for $BTC – High probability continuation long at a break of top green – Moderate to High probability bounce in green zone below, contingent on adequacy of responsiveness to price hitting area – Considering Shorts below red for NT trend correction,” he explained.
This is my current game plan for $BTC
– High probability continuation long at a break of top green.
– Moderate to High probability bounce in green zone below, contingent on adequacy of responsiveness to price hitting area.
– Considering Shorts below red for NT trend correction. pic.twitter.com/oPtgXaka21
— Cantering Clark (@CanteringClark) May 23, 2019
Although Bitcoin is currently in a state of liminality between the persistent bear market and what appears to be an inevitable bull market, it does seem as though it will take additional time before traders and analysts alike truly know whether or not BTC is in the early stages of the next massive bull run.
Featured image from Shutterstock.