Bitcoin (BTC) and the entire crypto markets have been facing some levels of instability as the markets experience a bout of sideways trading after losing the upwards momentum that they have incurred over the past several weeks.
Although Bitcoin’s recent drop into the $7,000 region appeared to have put its bullish momentum in jeopardy, analysts are now noting that it may drop as low as $5,400 before the bulls surrender their control fully.
Bitcoin Stabilizes in Upper $7,000 Region as Selling Pressure Mounts
At the time of writing, Bitcoin is trading down less than 1% at its current price of $7,730 and is down slightly from its 24-hour highs of nearly $8,000 which was set earlier today.
Over a one-week trading period, BTC has been oscillating between the lower-$7,000 region and the upper-$8,000 region, which is quickly becoming a fresh trading range that may ultimately lead to a persistent pattern of consolidation.
Importantly, it now appears that Bitcoin could drop significantly further in the near future before it becomes bearish from a long-term perspective.
Josh Rager, a popular cryptocurrency trader on Twitter, discussed this in a recent tweet, explaining that he believes it could drop as low as $5,400 before it falls into a long-term bearish trend, which may mean that significantly further losses are imminent.
“$BTC Pullback Areas: The lowest I see Bitcoin pulling back is the .618 fib ($5404) as any lower would be bearish, IMO. Major confluence w/ previous support/resistance between $6109 to $6814. I’m personally watching for a bounce in this area with major interest near $6400 (VPVR),” he noted.
$BTC Pullback Areas
The lowest I see Bitcoin pulling back is the .618 fib ($5404) as any lower would be bearish, IMO
Major confluence w/ previous support/resistance between $6109 to $6814
I’m personally watching for a bounce in this area with major interest near $6400 (VPVR) pic.twitter.com/WpvzOxdZzU
— Josh Rager
(@Josh_Rager) June 6, 2019
Analyst: BTC Likely to Find Major Buying Support Around $6,800
Although Rager believes Bitcoin could fall as low as $5,400 before finding strong buying support, another popular analyst on Twitter recently explained that he believes BTC’s critical support level exists at $6,800.
Alex Krüger, a popular economist on Twitter who focuses his analysis primarily on cryptocurrencies, recently discussed the importance of the $6,800 level, noting that several technical formations are pointing to the importance of this level.
“$BTC still vulnerable. Longs once above $7900-$8000 (higher) or on panic flushes (lower). Next support: 7600-7435, 7200, 6800, 6400. 6800 is major, determined by all three price action, moving averages (50DMA) and fibs (Dec lows to 2019 highs). 6400 is the bull market level,” Krüger explained.
$BTC still vulnerable. Longs once above $7900-$8000 (higher) or on panic flushes (lower). Next support: 7600-7435, 7200, 6800, 6400.
6800 is major, determined by all three price action, moving averages (50DMA) and fibs (Dec lows to 2019 highs). 6400 is the bull market level. pic.twitter.com/x7qfk5Ojgr
— Alex Krüger (@krugermacro) June 5, 2019
It currently appears the Bitcoin and the aggregated crypto markets are sitting at the edge of a precipice, nearing a point at which they will either drop lower and risk re-entering bear market territory, or continue surging higher in the near-future.
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